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By G. Ram Reddy, V. V. Ramanadham

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Additional info for Government and Public Enterprise: Essays in Honour of Professor V.V. Ramanadham

Sample text

The normative theory of resource allocation views government budgeting as an optimising process that aims at maximising social welfare and the community utility function.

By “mode” is meant whether the interactions are multi-faceted (involving dealings between officials of government and enterprise at various levels and in various functions) or closely confined (for example, to exchanges between the government minister and the enterprise chairman and, possibly, a few of their top advisers). Enterprise. A managerial entity engaged in the production or distribution of goods or services, the demand for which it is able to influence by way of the charges for them that, to some extent at least, it is free to determine.

In Sri Lanka, specific legislation had to be enacted in the early 1970s to permit the enterprises to make contributions. In Korea, no dividend is payable to government under the legislation and surpluses are retained by enterprises for further investment. Elsewhere, the determination of contributions became a major problem as the budget review within government did not cover the revenue budget of enterprises. 16 In monocultured economies, reliance was placed on a few enterprises as the major contributors of government revenue.

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