Question

State three objectives of public sector enterprises.

Answer 1

Important objectives of public sector enterprises are:

• Balanced regional development: The government focuses on reduced regional inequalities by establishing public enterprises at economically backward regions.
• Balanced concentration of wealth and economic power: Private sector works on the agenda of profitability. Hence they go to any extremes for their own growth and development. It is observed that there is high concentration of wealth and economic power in the hands of the private sector. To reduce the concentration of wealth and to eliminate the situation of a total monopoly are few of the objectives of the government.
• Employment generation: Public sector has nationalised a lot of sick units in order to increase employment.