question_answer

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

Answer:

Examples of public sector activities are:

(i) Construction of roads

(ii) railways bridges

(iii) providing irrigation through dams etc.

Reasons why government has taken up these activities are:

(i) These activities require huge amount of money which is beyond the capacity of private sector.

(ii) Private sector may charge high rate for their use.

(iii) It is difficult to collect money from thousands of people who use these facilities.

(iv) Sometimes government in order to support the private sector has to take up the activities like selling electricity at generation cost.

(v) Spending on health and education is necessary as it is the primary responsibility of the government.