Question

Consider the following statements about public sector organisations:
i. The government holds either full or partial ownership of public sector organisations.
ii. Their primary motive is to generate maximum profits for the government.
iii. They provide services in areas such as healthcare, education, and transportation.
Which of the statements given above is/are correct?

• A. Only i and iii
• B. Only i and ii
• C. ) Only ii and iii
• D. All of the above

Answer 1

Answer:

A. Only i and iii

Understanding Public Sector Organisations

• Public Sector Organisations are entities largely owned, controlled, and financed by the government, either at the central, state, or local level.
• They play a crucial role in providing essential services and contributing to national development.

Key Characteristics and Objectives:

• Government Ownership: Statement (i) is correct. The defining feature of a public sector organization is that the government holds significant ownership, which can range from a majority stake (e.g., more than 50%) to full (100%) ownership.
  • Competitive Exam Fact: In India, a company is considered a Public Sector Undertaking (PSU) if the government holds at least 51% of its paid-up share capital.
• Primary Motive: Statement (ii) is incorrect. While public sector organizations may generate profits, their primary objective is typically not profit maximization. Instead, their main goals often include:
  • Providing essential public goods and services (e.g., healthcare, education, infrastructure).
  • Promoting social welfare and equitable distribution of resources.
  • Ensuring national security and strategic development.
  • Stabilizing the economy and creating employment.
  • Competitive Exam Fact: The concept of 'Welfare State' often relies heavily on a strong public sector to ensure social justice and basic amenities for all citizens.
• Service Provision: Statement (iii) is correct. Public sector organizations are instrumental in delivering a wide range of services that are vital for society's functioning and well-being. These include:
  • Healthcare: Government hospitals, public health programs.
  • Education: Public schools, colleges, universities.
  • Transportation: Railways, public bus services, national airlines, ports, highways.
  • Utilities: Electricity, water supply, sanitation.
  • Communication: Postal services, public broadcasting.
  • Competitive Exam Fact: The nationalization of key industries (like banks, coal, etc.) in India during the mid-20th century was aimed at ensuring broader public access to services and directing resources towards national development rather than solely profit motives.