Why is the existence of a public sector necessary in any economy?
Points to Remember
- Public sector contributes to economic development.
- It ensures benefits from the projects reaches to all sections of society.
- 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:
- The public sector contributes to the economic development of the country through the expansion of infrastructure and generates financial resources for development.
- 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.
- 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.