The purpose of public sector is not to earn profits instead spends on a whole range of
activities.’’ Elucidate. please tell
Answers
The government is responsible for the public sector undertakings.
The activities of the private sector are guided by the motives to earn profits. Thus private sector undertakings tend to be expensive.
On the other public sector activities are provided at reasonable prices.
- It is the governments duty to provide certain activities at reasonable prices.
- Besides the government also supports Private sector in order to motivate them to continue their production
- EXAMPLE- the cost of electricity is reduced for industries so that the cost of production if these industries do not rise up.
- The government of India buys wheat and rice from farmers at a fair price. This procured food is further stored and sold in ration shops.
The government ends up bearing some of the cost but it supports the farmers and the consumers.
- The government spends on EDUCATION and HEALTH SECTORS too.
- Running proper schools, providing quality education, providing health facilities etc. are the primary responsibility of the government
- Government also has to and needs to pay attention to aspects of HUMAN DEVELOOMENT like sanitation and nutrition.