Macro

Government Budget

Medium

Which of the following is the best example of Public provision and Public Production respectively?

Opening up of 11 Central University in next 5 years worth of 20,000 cr from annual budget 2024-25, BSNL.

Airtel, BSNL.

AIIMS, Coal India Limited.

5 lacs brick homes to people from 'Below Poverty Line' strata, Loan of up to 10 lac to women entrepreneurs.

✅ Correct Option: 1

Option 1 -> Central Universities funded from budget (Public Provision) and BSNL as government-owned telecom operator (Public Production) - correctly represents both concepts.

Option 2 -> Airtel is a private company, not an example of public provision or production; only BSNL qualifies as public production.

Option 3 -> AIIMS is both publicly provided and produced (government funds and operates); Coal India is public production, but AIIMS doesn't clearly separate provision from production.

Option 4 -> Both examples represent public provision (government funding/subsidizing); neither represents public production where government actually operates the enterprise.

Hence, Option 1 -> Public Provision refers to government financing services from public funds (like Central Universities funded through annual budget where government pays for education). Public Production means government actually owns and operates the enterprise (like BSNL - a Public Sector Undertaking that provides telecom services). Option 1 correctly distinguishes both concepts: universities represent government financing education (provision), while BSNL represents government operating a business (production). -> correct

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B. It indicates the total borrowing requirements of the government from all sources.

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Choose the correct answer from the options given below:

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Which of the following is the best example of Public provision and Public Production respectively?

Solution

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