Difference Between Public Sector and Joint Sector

A nation’s economy depends on productive measures. A nation does not rely only on taxation systems to generate revenue.


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Wages and taxes that a company pays are examples of:

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Productivity means how much was done compared to what it took to do it.

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It is the government’s move towards establishing enterprises for the welfare of the country. In turn, the people of the nation consume the products manufactured by government companies.

Of course, a nation’s security is the primary outlook for any nation. Expenditure towards many social and national welfare activities to be taken care of as well.

A government shall look at two things to be balanced; People Welfare and National Security. Once these two things are addressed, rest all will fall in place. But the umbrella is huge, how many aspects does People welfare have? and How any things does National Security have?

It is all huge in numbers, to control, manage, and lead the situations the government needs a balanced approach towards development. In this way, enterprises started developing the nation. The two terms that come to mind while talking about enterprises are Public Sector and Joint Sector.

Public Sector vs Joint Sector

The difference between Public Sector and Joint Sector is on ownership. A public sector enterprise or industry is completely owned and controlled by the government while the Joint Sector enterprise, as the name, implies shares the ownership between government and private entrepreneurs.

Public Sector vs Joint Sector

These both have the government’s involvement and were developed for people’s welfare and service. They have many differences between the two.


Comparison Table

Parameter of ComparisonPublic SectorJoint Sector
OwnershipPublic Sector is completely owned by the Government.Joint Sector is the section which is partially owned by the government and private institutions.
Areas of ServiceFew Public Sector enterprises are defense services, railways, nuclear power.Banking Services, Airlines, Petroleum Products
Capital InvestmentPublic Sector raises funds through taxes, fees, and internal state-level funds transfer.Partially made by the government and the private company.
Basic ObjectivePublic Sector is set up for the benefit and social welfare of the people.Joint Sector is set up for social welfare and also for Profit Generating purposes,
AccountabilityThe government is completely responsible for the rise and fall of the enterprise.The government and the private company will take responsibility for the rise and fall of the enterprise.


What is Public Sector?

Public Sector is the organizations that are completely owned and operated by the government of a nation. It primarily exists to serve the citizens of the nation.

Examples of Public Sector Industries or services are; military services, law enforcement services, education, and so on. Public Sector does not work for any generation of profit.

It is indeed to be noted that, the services offered by the public sector are many times offered to people who do not pay any as well, like the street lights. It looks at the service to society and not be based on any individual.

The funds for Public Sector Industries are raised from many sources. It includes the tax, Fees, and also through finance transfers from other state governments internally.

The process of fund generation may vary from country to country. But the intention of the Public sector always remains the same, welfare of the people.

The public sector organizations are of different forms and statures. That is 1. Direct Administration, 2. State-Owned Enterprises 3. Partial Outsourcing.

It is widely suggested by people to join the public sector for jobs as the job is well secured than any. All the public sector jobs have retirement benefits too.

The basis of a promotion being seniority in the Public Sector and the stability of a job is always confirmed.

public sector 1

What is Joint Sector?

Joint Sector is an undertaking where the enterprise is owned and controlled by public sector agencies and private groups. It is a pretty new ideology developed in the economy.

Understanding it more simply, a joint sector is a company which is a combination of government and a private company to offer professional management. The investment is between the Government and Private investments.

The joint sector companies are handled by the state government in direction and control. It is also by law, on the capital investment the government must invest not less than 26% of the entire value.

The joint sector can be (1) Central Government and Private Businesses combined or (2) Central Government, One or more state government, and Private company in partnership.

The state government can also partner with private companies or industrial development corporations to set up joint sector industries. This may not involve the central government as well.

This model has largely helped the government from setting up any Public sector company from the beginning. Also, the private partnership can offer a better workforce and productivity.

joint sector

Main Differences Between Public Sector and Joint Sector

  1. The main difference between the Public Sector and the Joint Sector lies in ownership. The Public Sector is completely owned by the government while the Joint sector has shared ownership between the government and private institutions.
  2. The investment for Public Sector entities is made through Tax and additional transfers from state governments whereas the Joint Sector has private institutions pooling money as well as the government investing through shares and fees.
  3. The basic objective of setting up the public sector is the social welfare of the people while the joint sector is set up for generating profit also.
  4. The government is held accountable for the rise and fall of the public sector, while in the joint sector, it is the responsibility of both the government and the private body.
  5. The public sector units constitute of defense services, railways, nuclear power, and so on while petroleum services, airlines, and banking services come under joint sector companies.


  1. https://www.ingentaconnect.com/content/mcb/042/1994/00000007/00000001/art00006
  2. https://www.jstor.org/stable/4361976
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