ROLE AND IMPORTANCE OF CENTRAL AND STATE GOVERNMENT FISCAL POLICIES IN INDIA: A VIEW

he public sector is that part of the economy which is owned and controlled by the government. The primary objectives of the public sector are to provide basic goods and services to the citizens, promote economic development, and protect the interests
of weaker sections of society. The public sector in India comprises both Central Government and State Governments. The Central Government includes ministries, departments, and public enterprises. The State Governments include state-level ministries, departments, and public sector undertakings. The public sector is the portion of the economy that the government controls and manages. It consists of entities that offer public goods and services, including national defence, law enforcement, public education, health care, social welfare, and infrastructure development. This involves improving social welfare and protecting national security. Through rules and regulations, the government ensures that the private sector functions in the best interest of residents. Employees in this sector are often viewed as civil servants committed to serving the general people. Depending on the political and economic systems, the size and scope of the public sector might differ from country to country. In certain nations, the public sector is larger and more active in providing goods and services, whereas in others, the private sector is dominant. Public finance is the study of the role of the government in the economy. It is the branch of economics that assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones. The public sector in India has been playing a very significant role since the country’s independence. It has always been aimed at achieving certain socio-economic objectives. However, its performance over the years has not been up to the mark. This article provides an overview of the public sector in India, its objectives, importance, performance, and problems.

Keynotes: public goods and services, welfare and infrastructure, finance, expenditure, and revenue.