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Distinguish between public sector and public enterprise.

Distinguish between public sector and public enterprise.


1 Answer

The Public sector and public enterprise seem to be same at first instance for its operational way. But they have marked difference according to their spheres of activity. Public sector has a broad meaning, it includes all the social, industrial and commercial activities carried on by the government. It signifies all publicly controlled activities, the developmental activities tin the fields of education, public health, transport, communication and infrastructure etc. Public sector includes not only government departments but also government companies whether in the central or the state sector, irrigation and power projects, railways, posts and telegraphs, ordinance factories, other departmental undertakings. The banking, insurance, financial and other services also come under the preview of public sector.

Public enterprise, on the other hand, can be defined as those specific forms of institutions set up either at the central, state or local levels involved in manufacturing or production of goods .including agriculture or making available as service for the price. Such institutions can be maintained either directly in the form of a departmental organization or through any autonomous body. The main focus is that in public enterprises, the price is charged for goods and services provided by it. So, the public enterprises do not cover the social service or administrative function of the government.

So, public sector is meant by all the economic activities undertaken by the government and public enterprises are those specific forms of institutions or establishments in public sector which carry on the production of certain goods and services.

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November 14, 2019