The public sector contributes to the economic development of a nation by not mere financial profits. The public sector plays a vital role in contributing to the Human Development Index via its functioning in health and education services. Also, by buying food grains at a "fair price" from farmers, providing electricity, water, postal services at low rates, the government ensures that the people have a good living. It utilises taxes and grants to pay for the same. Thus, it plays a vital role in adding to the economic development of a nation, based on its human development situation.
