Previous Year Question
With reference to the functions of Public Sector in India, which of the following statements is/are correct?
I. To provide public utility resources
II. To build social and economic overhead capital
III. To ensure balanced regional and sectoral growth
IV. To pursue egalitarian goals
Select the correct answer using the codes given below:
I, II and III are correct
II, III and IV are correct
I, II, III and IV are correct
I, III and IV are correct
Correct Answer: C
Detailed Solution
Statement I is correct. An important role of the Public Sector has been to provide public utility services/resources involving large capital investment and broad social requirements, such as transport, power and other infrastructure.
Statement II is correct. The Public Sector has played an important role in building social and economic overhead capital, i.e. basic economic and social infrastructure required for further industrial and economic development.
Statement III is correct. One of the objectives of the Public Sector has been not merely to earn profits but also to promote balanced regional and sectoral development by directing investment towards relatively backward regions. Government Budget documents have also identified balanced regional development as an important role of the Public Sector.
Statement IV is correct. The Public Sector was also expected to pursue egalitarian goals by checking excessive concentration of economic power, advancing social objectives and broadening the distribution of the benefits of development. Government records have linked the Public Sector with basic social objectives and prevention of concentration of wealth and economic power.