List some functions of Government in promoting business operations.
The Government plays an important role in promoting business operations. The promotional role encompasses government efforts to provide adequate infrastructure and an environment conducive for business. Some of the major functions performed by the government in promoting business operations are as follows:
- Maintenance of public utilities.
- Promote private and foreign investment.
- Provide trade incentives for promoting foreign trade.
- Match and control money supply with development requirements.
- To enable effective utilization of various resources.
- Encourage developmental attitude among various sectors.
- Encourage optimal utilization of various natural resources.
- Ensure equitable income distribution.
- Make economic resources productive and efficient.
The Government also provides various incentives and schemes for encouraging business activities, besides basic infrastructure like roads, airports, supply of water and power, bridges, communication and transportation system, banking and financial systems, industrial training centres, marketing network etc.
It also coordinates the working of public, private joint and cooperative sector. In promotional role, government does not intervene or regulates the working business. The state also regulates and intervenes business to provide direct assistance in form of grants, tax holidays, research and development, consulting and advice, protection, industrial training and other forms of financial assistance.
Thus it can be said that the government helps in promoting business operations by providing various fiscal, budgetary and monetary incentives for expansion of business and priority sectors of the economy.