University of Jordan/ School of Business

Public Administration Department

Public Financial Administration 1606740
Fall 2017 / Professor Sultan Abu Tayeh

Course Objectives

This course is intended to provide public administration graduates an overview of public

agency budgeting and financial management. Public agency budgets are the means by
which public resources are allocated and, as such, are central to the role of government.
The course will provide an overview of the budget process, including the players and the
strategies they employ, as well as provide students with the practical skills involved in
understanding, analyzing and preparing budgets.

The goals of the course are to:

Achieve an understanding of the central role that budgets play in the systems of
government.

Develop the skills needed to be an effective participant in the budget process,

including cost analysis, revenue and expenditure estimation and preparation of
budget justification.

Familiarize students with several other important financial management activities

including cash management, investing, capital budgeting and public sector
borrowing.

Introduce some of the issues particular to budgeting in a nonprofit organization.

Discussion of these issues will include the historical context, legal issues and economic
theories underlying current practices. The course is intended to provide you with a broad
understanding of public finance issues. We will also spend time addressing budget issues
in work situations. In doing so, the goal is to develop a better understanding of the critical
factors involved in budget decision making and improve your ability to communicate
effectively in this arena. This will be achieved through the required readings, class
discussion, in-class exercises, brief papers, a cost analysis and a budget justification.

Required Reading

The main reference for the class is A compiled Material on Fiscal Administration: Analysis
and Applications for the Public Sector compiled by Instructor. (Note that A CD of the text

1
has been made available and you are welcome to use it, and the references for the text in
this syllabus are also included.)

Additional required readings intended to round out your understanding of the topics
covered by the course will be available in the form of a CD.

Class lectures and discussions will use the required readings as a jumping off point for
discussion. For this reason, it is essential that you come to class having read the assigned
readings. In addition, you are expected to be familiar with current events, such as the status
of the budget.

Course Assignments

Your grade for the course will be based on class participation, a brief paper and revision, a
mid-term Exam, and a final exam.

Class Participation: Your participation in class is essential to your success in this course.
In addition to demonstrating your understanding of the material covered, collaboration in
the form of verbal give and take is critical to developing creative solutions in the work
environment. We will use issues and problems from your work settings to apply what you
are learning in the class. In addition, we will briefly discuss several current public finance
issues at the start of each class session.

Brief Paper: You will be asked to prepare a brief paper (no more than three pages double-
spaced) arguing a position on an issue related to one of the readings for the first week
classes. Please pick a topic about which there is likely some difference of opinion (for
example, why the state is in its current fiscal situation, the extent to which the deficit is a
problem, the role of conflict in budgeting, etc.) rather than a simply technical or descriptive
reading. The papers should briefly summarize the major argument or points the author
makes and lay out whether you agree or disagree with authors argument and why. These
papers will be returned to you with questions and comments, and you will be asked to
revise them.

Course Schedule

Readings are listed for each class consistent with the flow of the topics that will be
covered. Where I indicate that material should be skimmed, I really do mean skim!

Week 1 (September 17-21)

Overview and Introduction to Public Financial Management and The emergence of a new
approach
Short paper on an issue related to one of the first weekends readings due prior to the
beginning of class.

Week 2 (September 24-28) + Week 3 (October 2-6) + Week 4 (October 9-13)

2
Economics of government and public choice theory
Market failure as the basis for public policy
Instruments of government
What is a Budget, How are Budget Decisions Made, and the Structure of Budget.
Economic functions of the budget
Financial functions of the budget

Week 5 (October 16-20) + Week 6 (October 23-27)

Budgeting reforms
Public Expenditure
Budget Cycle

Week 7 (October 30- November 3)

The Theory of Taxation and Optimal Taxation
Kinds of taxes
Functions of taxation
Tax expenditures

Week 8 (November 6-10) + Week 9 (November 13-17)

Structural features of taxes
Tax system design
Jurisdiction to tax
Features of a good tax system

Week 10 (November 18-23)

The tax unit
Tax evasion, tax avoidance and tax planning
Sovereign right to tax
Estimating Revenues and Revenue Sources

Week 11 (November 25-30) + Week 12 (December 3-7)

Government Budgets and the Budget Process
Budget formulation
Budget execution
Accounting and reporting
External oversight

Week 13 (December 10-14)

Budget History
Budget Reform
Performance Improvement
Program Evaluation

Final Exam (to be determined by the university)