Explain why the government has taken up public sector activities?

1.	Explain why the government has taken up public sector activities?
Answer» These activities are the primary responsibility of the government. These activities need spending of large sums of money, which is beyond the capacity of the private sector. Also, collecting money from thousands of people who use these facilities is not easy. Even if they do provide these things they would charge a high rate for their use. So governments have to undertake heavy spending and ensure that these facilities are available to everyone. Sometimes government in order to support the private sector has to take up the activities like selling electricity at generation cost. Spending on health and education is necessary as it is the primary responsibility of the government.

Answer»

These activities are the primary responsibility of the government.

These activities need spending of large sums of money, which is beyond the capacity of the private sector. Also, collecting money from thousands of people who use these facilities is not easy. Even if they do provide these things they would charge a high rate for their use. So governments have to undertake heavy spending and ensure that these facilities are available to everyone.

Sometimes government in order to support the private sector has to take up the activities like selling electricity at generation cost.
Spending on health and education is necessary as it is the primary responsibility of the government.

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Explain why the government has taken up public sector activities?

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