Question

Distinguish between the following.

Statutory corporation and Departmental organization.

Answer 1

Basis of Difference	Statutory Corporation	Departmental Organisation
Meaning	This type of organisation is formed by passing a special Act of Parliament and is an initiative of private enterprises having the power of the government.	It is an organisation that works directly under the ministry and ensures a high degree of public accountability.
Ownership	It is wholly owned by the state	This type of undertaking is completely owned by Government.
Capital financing	May borrow from the government or general public	These are given annual budget and cannot borrow funds from outside. Thus, these do not enjoy financial independence.
Employees	The employees are not Government employees	The employees of these kind of undertaking are government employees.
Governed by	There is no interference from government in financial and day to day working	These are governed by some specific Ministries.