What is the role of public sector in economic development?
Here we detail about the following nine important roles played by public sector in Indian economy, i.e., (1) Generation of Income, (2) Capital Formation, (3) Employment, (4) Infrastructure, (5) Strong Industrial Base, (6) Export Promotion and Import Substitution, (7) Contribution to Central Exchequer, (8) Checking ….
What are the 4 roles of government in the economy?
However, according to Samuelson and other modern economists, governments have four main functions in a market economy — to increase efficiency, to provide infrastructure, to promote equity, and to foster macroeconomic stability and growth.
What is the public sector of the economy?
Public sector, portion of the economy composed of all levels of government and government-controlled enterprises. It does not include private companies, voluntary organizations, and households.
What are the aims of the public sector?
Secondly Public sector strives to create employment whereas Private sectors main aim is to become efficient and cut cost and in this process they might cut jobs. Public sector business usually locates in regions where there is underdevelopment so as to create jobs and income for local population.
What is the main purpose of public sector?
Public sector helps the government to enforce social control on trade and industry for ensuring equitable distribution of goods and services, Public sector organisations are businesses set up with the aim of providing a public service rather than making a profit.