Objectives of Government Organisation

A Government Organisation is set up to serve a mix of economic and social objectives that go well beyond simple profit-making:

• Accelerating economic development. Public enterprises undertake large infrastructure and heavy-industry projects (power, steel, transport, telecommunications) that require capital and gestation periods too large or too slow-yielding for most private investors, laying the foundation on which private industry can later build.
• Balanced regional development. Government units are deliberately located in backward or less-developed regions to create employment and industrial activity where private enterprise, chasing quicker returns, would not normally invest.
• Preventing concentration of economic power. By operating key industries itself, the State prevents ownership and control of vital sectors from concentrating in a small number of private business houses.
• Providing essential goods and services at fair prices. Utilities such as electricity, water supply, postal services and public transport are run as public enterprises so that access does not depend solely on the ability to pay a profit-maximising price.
• Generating employment. Large public-sector undertakings are major direct and indirect employers, particularly important during periods when private-sector job creation lags. …