Question

Long answer questions.

What is a Departmental Organization ? Explain its importance.

Answer 1

Departmental organisations work directly under the ministries of the government with no separate legal existence. They have a high degree of accountability towards the public and perform all its activities as an integral part of the ministry and the government.
The following points highlight the importance of departmental organisations

1. Easy formation- They are set up under an Act of Parliament and do not require a special statute or registration. Thus, they are easy to form.
2. High public accountability and efficiency- As these enterprises work directly under the ministries of the government, they have a high degree of public accountability. This in turn ensures efficiency.
3. Source of income- The revenue earned by these undertakings directly goes to the government treasury. So, these undertakings are a source of income for the government.
4. Optimum utilization of resources- Strict accounting and auditing controls ensure optimum resource utilisation. Also with the qualified government staff, the organization and activities are managed properly.
5. High degree of control- These enterprises have maximum degree of control, as they are set up under an Act of Parliament.