This article throws light upon the three main problems of state enterprises. The problems are: 1. Autonomy for State Enterprises 2. Accountability of State Enterprises 3. Price Policy of Public Enterprises. Problem # 1. Autonomy for State Enterprises: The very object of constituting State enterprise as separate units in the form of Statutory Corporation or Joint-Stock Company is to preserve [...]
In considering the issue of public accountability of State enterprises we shall consider the following methods of making them answerable to public authorities and ensuring their compliance with criteria of commercial principles: 1. Ministerial Control 2. Parliamentary Control 3. Financial Control. Following chart shows the different methods to make State Enterprises accountable to the public: Method # 1. Ministerial Control: [...]
After reading this article you will learn about the working of public sector enterprises. Also learn about its defects, tests and suggestions for improvement. Public sector has been growing by leaps and bounds both in terms of the size on investments and diversity of its activities. At the start of the First Plan the investments in public enterprises totalled only [...]