CBSE Class 10 Answered

In the public sector, the government owns most of the assets and provides services to the public. They raise money through taxes and other ways to meet their expenses. The main aim of the public sector is to not only earn profits but also to promote welfare of the people. The public sector companies therefore at times also incur losses. For example, in order to ensure that railways are affordable to every section of the society, the Government keeps the cost of the tickets reasonable.

Some of the activities which involve large investment can be undertaken only by the government such as construction of roads, bridges, railways, generating electricity, ration shops, health and education. In these activities, the government has to support and ensure security for everyone. Public plays important role in the economic development and self-reliance of a country. It provides balanced regional growth, filling the gaps in capital goods, employment, export promotion and foreign exchange earnings. Therefore several activities are undertaken by the public sector.