Government functions and scope

Government functions and scope

1. GOVERNMENT : FUNCTIONS AND SCOPE

2. GOVERNMENT : FUNCTIONS AND SCOPE In the modern world, Government has to perform several responsibilities. Maintenance of Law & Order Protection of the life of people and property Administration of justice Providing basic infrastructure Promotion of public welfare etc In addition to these, the Government has to perform three economic functions

3. GOVERNMENT : FUNCTIONS AND SCOPE Government has to perform three economic functions Allocation Function Distribution Function Stabilisation Function

4. GOVERNMENT : FUNCTIONS AND SCOPE Allocation Function Allocation Function of the Government refers to making available to all… Public Goods Arranging Resources for the same purpose and distributing them effectively among people It is important to distinguish between Public Goods and Private Goods

5. GOVERNMENT : FUNCTIONS AND SCOPE Public Goods Public goods are those which can be used by all people. None one can be excluded from the consumption of these goods. Examples… Roads Parks Street Lights Public Administration Defense Hospitals Courts

6. GOVERNMENT : FUNCTIONS AND SCOPE Private Goods Goods like food articles, clothes, consumer durables like television, vehicles, cinema, travel facilities etc that we can buy from the market for a price are called private goods because they are bought for private use.

7. GOVERNMENT : FUNCTIONS AND SCOPE Allocation Function The function of the Government to supply public goods to the people is called Allocation Function

8. GOVERNMENT : FUNCTIONS AND SCOPE Distribution Function Distribution Function refers to the activities of the Government to reduce inequality in income and wealth. Market