Explain how public sector contributes to the economic development of a nation?
Government owns most of the assets and is totally responsible for ensuring proper delivery of service in the Public sector. Example – Railways and post office. For providing services in Public sector, government charges a high rate to use those services like the construction of roads, bridges, railways, harbours, generating electricity, providing irrigation through dams, etc. The main purpose of the government is not just to earn profits, but they also raise money through taxes and other means. Thus, this way the public sector contributes to the economic development of a nation.
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