Question

State with reasons whether the following statements are True or False.

Privatization of the public sector requires some precautions to be taken by the Government.

Answer 1

Privatization of the public sector requires some precautions to be taken by the Government- True

Explanation:
Yes, the privatisation of the public sector requires some precautions to be taken by the Government.
This is because some of the Public Sector Units (PSUs) like, waterways, railways, etc. enhance the welfare of the nation and are meant to serve general public at a very nominal cost. Privatisation of such important PSUs will lead to loss of welfare of poor people. Thus, it is very important for government to take precautions regarding the privatisation of these enterprises. That is, only less important PSUs should be privatised, while leaving the core and important PSUs in the public domain.