Five features of public sector
Answers
1. State Ownership:
The enterprise ownership has to be vested with the State. It could be in the nature of Central, State or local government ownership or any instrumentality of the state too can have the ownership of public enterprise.
2. State Control:
Public Enterprise is controlled by the Government both in its management and functioning. The Government has the direct responsibility to manage the affairs of the enterprise through various devices and exercises control over it by means of a number of agencies and techniques.
3. Public Accountability:
Public Enterprises owe accountability to people as they are funded through public money. This accountability is realised through legislature and its committees, ministers, audit institutions and other specialised agencies.
4. Autonomy:
Public Enterprises function with utmost autonomy under given situations. They are free from day to day interference in their affairs and management.
5. Coverage:
The public enterprise traverses all areas and activities. There is hardly any field of activity, which is not covered by the operations of public enterprises.
Answer:
(i) The government owns assets and takes responsibility to deliver services.
(ii) This sector is not guided by profit motive.
(iii) It invests funds to construct structures and infrastructure of public utility e.g. construction of roads, bridges, railways, harbours, generation of electricity, construction of dams, school and college buildings etc.
(iv) All citizens of a country use and obtain services produced by this sector unconditionally.
(v) It collects funds for investment indirectly through taxes on people having certain income and capable to pay them.
Example : Post and telegraph, Railways, C.P.W.D
Explanation:
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