Question

Write short answer to the followings.

What are the features of public sector?

Answer 1

The following are some of the main features of public sector or public enterprises.

1. State ownership: The ownership of public enterprises is controlled by central or state governments.
2. Public accountability: Public enterprises are accountable to people, as they utilise public money. That is, they are subject to accounting and auditing procedures of the government.
3. Coverage: Public enterprises cover and provide almost all types of activities covered under rural as well as backward areas.
4. Risky ventures: Public sector enterprises often engage and invest in risky ventures that require huge capital.
5. Objective: The main objective of these enterprises is promotion of public welfare. In this regard, they develop infrastructure, generate employment, etc.