The economy of a nation depends on effective measures. A nation does not rely solely on tax systems to generate revenue. The government decides to establish companies for the welfare of the country. In turn, the nation’s people consume the products manufactured by government companies.
Of course, the security of a nation is the main perspective for any nation. Expenses for many national and social welfare activities must also be taken care of.
A government must consider two things to balance itself; the Well-being of the people and national security. Once these two things are addressed, the rest will fall into place. But the umbrella is huge; how many aspects does the well-being of people have? And what things does National Security have?
Everything is huge in number to control, manage and lead the situations that the government needs with a balanced approach towards development. In this way, companies began to develop the nation. The two terms that come to mind when talking about companies are Public Sector and Joint Sector.
Both have the participation of the government and were developed for the welfare and service of the people. They have many differences between the two.
The Difference Between Public Sector and Joint Sector is in ownership. A public sector company or industry is fully owned and controlled by the government. In contrast, the joint sector company, as its name implies, that it shares ownership between the government and private entrepreneurs.
Comparison Table Between The Public Sector And The Joint Sector
Benchmark Public sector Joint sector
|Property||The public sector is wholly owned by the government.||Joint sector is the section that is partially owned by the government and private institutions.|
|Service areas||Few public sector companies are defense services, railways, nuclear power.||Banking services, airlines, petroleum products|
|Capital investment||The public sector raises funds through taxes, fees, and internal transfers of funds at the state level.||Partially carried out by the government and private enterprise.|
|basic objective||The Public Sector is configured for the benefit and social welfare of the population.||The Joint Sector is created for social welfare and also for profit generation purposes,|
|Responsibility||The government is fully responsible for the rise and fall of the company.||The government and private enterprise will bear the responsibility for the rise and fall of the enterprise.|
What is the Public Sector?
The public sector is the organization wholly owned and operated by the Government of a nation. It exists primarily to serve the citizens of the nation.
Examples of public sector industries or services are; military services, police services, education, etc. The Public Sector does not work to generate profits.
It should be noted that the services offered by the public sector are often offered to people who do not pay either, such as public lighting. Look at service to society and not based on any individual.
Funds for public sector industries are obtained from many sources. It includes the tax, fees, and financial transfers from other state governments internally.
The process of generating funds may vary from country to country. But the intention of the Public Sector always remains the same, the well-being of the people.
Public sector organizations come in all shapes and sizes. That is to say, 1. Direct administration, 2. State companies 3. Partial subcontracting.
People widely suggest joining the public sector to get jobs as the job is better secured than any other. All public sector jobs also have retirement benefits.
The basis of promotion is seniority in the Public Sector, and the stability of a job is always confirmed.
What is Joint Sector?
Joint Sector is a company where the company is owned and controlled by public sector agencies and private groups. It is a fairly new ideology developed in economics.
Putting it more simply, a joint sector is a company that is a combination of Government and private companies to offer professional management. The investment is between the Government and private investments.
The state government manages the joint ventures in the sector in direction and control. It is also by law that the Government must invest no less than 26% of the total value in capital investment.
The joint sector can be (1) Central government and private companies combined or (2) Central government, one or more state governments and a private company.
The state government may also partner with private companies or industrial development corporations to establish joint sectoral industries. This may not also involve the central Government. This model has greatly helped the Government set up any public sector company. In addition, the private association can offer a better workforce and productivity.
Main Difference Between Public Sector and Joint Sector
- The main Difference Between Public Sector and Joint Sector lies in ownership. The Government wholly owns the public sector, while the joint sector shares ownership between the Government and private institutions.
- Investment for Public Sector entities is made through additional taxes and transfers from state governments. At the same time, the Joint Sector has private institutions that pool money, and the Government invests through shares and fees.
- The basic objective of creating the public sector is the social welfare of the people, while the whole sector is configured to generate profits as well.
- The Government is responsible for the rise and fall of the public sector, while in the joint sector, it is the responsibility of both the Government and the private body.
- Public sector units comprise defence services, railways, nuclear energy, etc., while oil services, airlines and banking services belong to joint ventures.
There must be a balance of economy and welfare in any development. A nation can be managed with good welfare activities; simultaneously, there must be an aggressive movement to generate funds as well. Of course, the Government’s fiscal policy is generating revenue.
But is that enough to run a successful government? The global arena is more competitive and threat-oriented. Money is needed for the country to be safe and secure. That is the main requirement for any country.
Similarly, the well-being of people through services is also required. The need for more ideas like Joint Sector Industries that give balance to the nation is very important.