Why is the existence of a public sector necessary in any economy?



Points to Remember

  1. Public sector contributes to economic development.
  2.  It ensures benefits from the projects reaches to all sections of society.
  3. Provide service s like education and health at moderate rates


Answer to be written in exam

The existence of a public sector is  necessary in any economy because of the following reasons:

  1. The public sector contributes to the economic development of the country through the expansion of infrastructure and generates financial resources for development.
  2. The public sector has to take up projects involving heavy expenditure to ensure that the benefit reaches to all sections of society at an affordable price.
  3. There are many activities that are the primary responsibility of the government such as healthcare, and education . It is required that the government makes expenses on these to ensure easy availability of these services at moderate rates. 

Write any 2 points.

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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 13 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.