Government interference is more in public sector enterprises.
Justify the following statement:
Government interference is more in public sector enterprises.
1 Answers
1. Public enterprises are accountable to the public and Government as the money is financed by the annual budget.
2. Public sector is welfare oriented and not profit oriented as public sector carries out work which is essential in the larger interest of public like making roads, bridges, flyovers, etc.
3. Various Parliamentary committees are set up to scrutinise the working of public enterprises and the reports are tabled before the Parliament.
4. The PSE’s do not enjoy financial autonomy, operational or administrative autonomy.
5. Thus, more government interference in public sector enterprises.