Explain the major objectives of the public sector.
The major and important objectives of the public sector are:
Acceleration of Economic Growth and Industrialization: In a developing country, like India, some industries need to be brought within public ownership and control in order to achieve rapid economic growth.
Promotion of Fair Distribution of Income and Wealth: Heavy industry strategy called for a pattern of resource allocation necessitated expansion of public sector.
Promotion of Balanced Regional Development: Public enterprises of the Central Government are to be set-up in those regions which are underdeveloped and where local resources are not adequate.
Promotion of the Growth of Strategic Defence oriented Industries: By way of surpluses from public enterprises, funds for financing development can be generated. These surpluses can be reinvested or can be used for the establishment and expansion of other industries.
Assistance of the Development of small and Ancillary Industries: By the public sector expansion, employment growth as well as the promotion of small and ancillary industries can be achieved.
Creation of Employment Opportunities: The expansion of public sector creates the employment opportunities.
Achievement of Socialist Pattern of Society: The socialistic pattern of society calls for extension in two ways firstly production will have to be centrally planned and secondly to bring about reduction in the in realities and wealth.
To avoid the limitations and abuses of the private sector: When initial capital requirements are large private sector fails to come forward in a big way, in such eases public sector enterprise is the answer.
Generation of forces of economic and technological self-reliance: Public enterprises should make themselves responsible for the building of the economic overheads like transport, power, fuel and basic capital goods.
Some of the important objectives are removal of poverty, attainment of self-reliance, reduction in income inequalities, expansion bf employment opportunities, removal of regional imbalances, acceleration of eonomic development and reduction of concentration of economic power.