Explain how public Sector contributes to the economic development of a nation?
Answers
The public sector contributes to the economic development of a nation by not mere financial profits. The public sector plays a vital role in contributing to the Human Development Index via its functioning in health and education services. Also, by buying food grains at a “fair price” from farmers, providing electricity, water, postal services at low rates, the government ensures that the people have a good living. It utilises taxes and grants to pay for the same. Thus, it plays a vital role in adding to the economic development of a nation, based on its human development situation.
Answer:
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Explanation:
Yes, the public sector contributes to economic development of a nation by providing several facilities and working opportunities to the society at a reasonable costs which the private sector cannot provide. Public sector spends larger sums of money on construction of railways, roads, bridge, generating electricity, irrigation facilities by setting dams etc, which are beyond the capacity of the private sector. It also encourages private enterprises, farmers and consumers through subsidies and support prices. It also contributes to economic development of a nation by providing education and health facilities to general public.