Question

Distinguish between ‘Public Provision’ and ‘Public Production’.

Hint:

Public Provision involves government-funded services, while Public Production means direct government manufacturing.

Answer 1

Public Provision: - Goods and services provided by the government but produced either by private firms or public enterprises. - Example: Government-funded education, health services, and subsidies. 

Public Production: - Goods and services both provided and produced by the government using public resources. - Example: Public sector undertakings (PSUs) like Indian Railways and BSNL. 

Key Differences: 

 Conclusion: Public Provision involves government funding for essential services, whereas Public Production involves direct government management and production.