Public sector has an important contribution in the economic development of acountry because the purpose of the public sector is not to earn profit. Generalconduct of all important activities. It is done by the generic sector only.

Such activities which are required by all the members of the society, such asconstruction of roads, bridges, railways, ports, electricity etc. and providingirrigation facilities from dams etc. are the work of the public sector. The government itself bears such heavy expenditure. The government buys wheatand rice to get fair prices to the farmers. It stores it in its god owns and sells it to consumers through ration shops at low prices. In this way the government helps both the farmers and the consumers.

Primary functions like providing health and education facilities to all also come under the public sector. It is the duty of the government to run the school properly and provide quality education. In this way, the contribution of the public sector in the economic development of a country is very important.