“There are several things needed by society as a whole", in the light of this statement, who can provide them at a reasonable cost the private or the public sector? Why?
SOCIETY as a whole, needs several things which the private sector will not be able to provide at a reasonable cost.
Following are the reasons for this:
- Activities in the private sectors are guided by the motive to earn profit and not welfare of the people.
- There are several services needed by the society which the private sector cannot provide at a reasonable price. Activities like construction of roads, bridges, railways, irrigation through dams etc, require huge amount of money which is beyond the capacity of the private sector. Private sector charges high amount for the use of these services.
- It is difficult for the private sector to collect money from thousands of people who use these services.
- The private sector sometimes ignore regional balanced development equality of income and development of basic industries.
- Private sector includes profit margins whereas, the government will charge a reasonable price for services. It is the primary duty of the Government to ensure the provision of public facilities with a service motto.