discuss the role of govt. regarding public facilities
Answers
Public facilities are defined as institutional responses to basic human needs, such as health, education, safety, recreation, and worship. Examples of typical public facilities include churches, hospitals, and police stations.
Role of the Government Can Broadly Be Divided Into Two Parts:
1. Direct Role:
The government is a social-welfare organisation. It works for the benefits of the common people without making any motive to maximise profit.
Hence, the main agenda of the government is welfare maximisation.
The direct involvement of the government towards the country’s development is summarised below:
(a) Agricultural Growth:
(b) Industrial Growth:
(c) Development of Socio-Economic Infrastructures:
(d) Efficient Utilisation of Resources:
(e) Maintain Law and Order:
(f) Social Distributive Justice:
(i) Progressive Taxation:
(ii) Economic Subsidy:
(g) Control of Monopoly:
(h) Active Participation:
The state actively participates into the economy on the following grounds:
(i) To maintain price stability or to control inflation;
(ii) To stop black marketing, by the policy of price ceiling;
(iii) Direct intervention during the time of political disorder or chaos;
(iv) Direct participation during financial or economic crisis,
(v) Sole intervention during the time of war emergency or natural disasters,
(vi) Regular supply of essential commodities to the weaker section of the society through effective Public Distribution System (PDS).
2. Indirect Role:
In spite of several direct roles, the government also plays different indirect roles for the rapid economic development of the country.
These indirect measures or roles are briefly given below:
(a) Fiscal Policy:
All the government policies related with public revenue and expenditures, i.e., taxes and subsidies, are related with fiscal policies. With the proper implementation of these policies the state tries to raise economic development of the country.
It helps to perform following functions:
(i) To control inflation,
(ii) To increase capital formation,
(iii) To maintain equalities of income and wealth;
(iv) To stabilize market.
(b) Monetary Policy:
The government along with the Central Bank with the help of this policy controls the money market. In India, Reserve Bank of India (RBI) along with all the commercial banks tries to control and regulate the money supply. During the time of inflation, i.e., excessive rise in price level, the government with the help of RBI checks the money supply and credit creation. On the other hand, during deflationary situation money supply increases.
(c) Price Measures:
The main objective of the state is to safeguard the common mass from the exploitation of private entrepreneurs. In this connection, the state sometimes adopts the price measures of essential commodities and services through the policies of price ceiling and price flooring.
(d) International Trade Policy:
According to Simon Kuznets, “Trade is the engine of economic growth.” The government controls and regulates the trade policies by imposing tariffs, quotas, duties etc. The main intention of the trade policies to regulate exports and imports for improving the Balance of Payment (BOP) situations and increasing the stock of foreign exchange reserves. All the above measures, i.e., both direct and indirect roles, are performed by the government to achieve economic development and to create the concept of Welfare State.