How does public sector contribute to the economic development to the nation

How does public sector contribute to the economic development to the nation? Explain.

Answer

Contribution of Public Sector to the Economic Development:

  1. In the public sector, the government owns most of the assets and provides all the services.

  2. The purpose of public sector is not just to earn profits but provide facilities to public in different ways.

  3. There are several things needed by the society as a whole, some of these need spending large sums of money which is beyond the capacity of private sector and it s provided by

    public sector.

  4. The government support and encourages industrial activities providing affordable electricity on the same way to promote agricultural activities, government purchase their products on MSP and provide subsidy for the poor on these products.

  5. Constitutional prohibition of untouchability.