Public Finances

Classes are theoretical-practical (TP). Audiovisual and digital media will be used to approach the topics to present the content and examples that illustrate them, as well as practical cases and exercises to encourage active participation. The pedagogical methods used will be: expository, interrogative and case study, enabling a practical, active approach with student interaction so that there is facilitation for the creation of ideas and confirmation of the content learned, as well as a strong approach to current contexts.

The main purpose of this subject is to provide students with theoretical-practical knowledge regarding State intervention in the economy.

Specific objectives are:

a) Understand the relationship between the State and the Economy;

b) Understand the different arguments for State intervention in the Economy;

c) Study the State Budget, from its organization to its approval, as well as the classification of public revenues and expenses;

d) Know the evolution, typology and effects of different public expenses;

e) Understand the evolution, typology and effects of different public revenues, carrying out a detailed characterization of the Portuguese tax system, subjecting it to international comparisons;

f) Study the impact of European integration on public finances.

At the end of the curricular unit, students must have the knowledge, skills and competencies that allow them to understand the economic justifications for the need for State intervention in the economy

I – Introduction

1. The relationship between the State and the Economy

2. Public economy and public finances

II – State intervention

1. Non-functioning of the market

2. Efficiency and equity

3. Macroeconomic objectives

III – The State Budget

1. The notion of budget

2. The functions of the State Budget

3. Budget organization rules

4. Budget balance

5. Preparation, discussion and approval of the budget

6. Budget execution and control

7. The budget as an instrument of economic policy

IV – Public expenses

1. Type of public expenditure

2. Evolution of public expenditure

3. Economic effects of public expenditure

V – Public revenue

1. Asset revenue

2. Fees

3. Taxes

4. Public credit revenue

VI– The impact of European integration on Portuguese public finances

1. A global vision of fiscal policy

2. Fiscal policy in the European Union

3. The impact of tax harmonization