Why should govt spend on public sector activities?? explain 5m
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Public Sector Activities – Government Must Spend
There are many activities that are the primary and very important responsibility of the Governments.
If the nation has to develop and progress in the right direction, the Government must spend on these activities.
Good examples are providing healthcare and education facilities for all people.
India has one of the largest illiterate populations in the world, to rectify this problem, the private sector alone cannot do it.
People are spread far and wide across the country, even in many remote areas of India.
Hence it is imperative that the Government provides elementary education to all.
Providing elementary education is the duty of the Government, they must provide good schools and teachers.
Government also needs to pay attention to aspects of human development such as nutrition, hygienic food, housing facilities for the poor, and availability of safe drinking water.
Some of the regions of India have very high infant mortality rates, hence the Government must spend on the above mentioned areas.
Providing health and education facilities, construction of roads, bridges, railways, harbours, generating electricity, providing irrigation through dams are some of the public sector activities. These activities are the primary responsibility of the government.
These activities need spending of large sums of money, which is beyond the capacity of the private sector. Also, collecting money from thousands of people who use these facilities is not easy. Even if they do provide these things they would charge a high rate for their use. So governments have to undertake heavy spending and ensure that these facilities are available to everyone.
The government provides all the services and owns most of the assets in the public sector.
Examples of public sector are Railways, Post Office etc.
In the private sector, the objective is to earn profits, whereas in the public sector the objective is more than profits.
To meet the expenses of the services rendered by the Government, it raises money through various measures including imposing taxes.
Public Sector Activities – Examples
Some things are a requirement for the entire society but the private sector is incapable of providing those requirements due to costs that will be incurred for the same. The financial might required is above the capacity of the private sector players.
In addition, private players will find it difficult to raise that kind of money from people, whereas the Government can do so, by imposing taxes.
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