Why do we need a strong public sector?

The Public Sector is the most vital sector of any Government. It manages and controls national and critical services such as Police, Emergency Services, Urban Planning, Security, Taxation and also Social Welfare.

What is meant by public sector undertaking?

A government-owned enterprise, government-owned corporation, statutory corporation and a nationalised company in India is called a public sector undertaking (PSU) or a public sector enterprise.

What is the role of disinvestment in Privatisation?

Disinvestment definition: The government undertakes disinvestment to reduce the fiscal burden on the exchequer, or to raise money for meeting specific needs, such as to bridge the revenue shortfall from other regular sources. In some cases, disinvestment may be done to privatise assets.

Is it necessary to have public sector?

Yes, it is necessary to have public sector due to its contribution to economic development of India. (i) It ensures rapid economic development. (ii) It promotes redistribution of Income and wealth. (iii) It develops industries which require huge investment.

What are the important features of public sector enterprises?

The notable characteristics of public enterprises are as follows:

• Business enterprise of government. Public enterprises are business enterprises established by government.
• Government ownership, management and control.
• Service motive.
• Autonomy.
• Public accountability.
• Separate legal status.
• Continued existence.

What are the features of public sector undertaking?

The main characteristics of PSUs in economics are as follows:

• State Ownership: Public sector undertakings are in full ownership and control of the Government or some other public authority.
• Government Control: The governments of India not only own but also control the functions of the PSUs in India.

Which was an objective of public sector disinvestment?

The government chooses a disinvestment strategy to reduce the fiscal burden and raise money to meet public needs. They may also be done to privatise the assets. Disinvestment can realise the long-term growth of the country.