Question

Give a few examples of public sector activities and explain why the government has taken them up.

Answer 1

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.