Public sector

The public sector is that portion of the national economy that is owned or controlled by the government, as well as all levels of government. Examples of public sector operations are:

  • National government entities

  • State (or provincial), county, and municipal entities

  • Military and police

  • Nationalized businesses

  • Businesses operated by the government

  • Infrastructure assets, such as bridges and public roads

The remaining portion of the national economy that is not in the public sector is considered to be in the private sector. It can be difficult to define the public sector, since many activities within this area are outsourced to the private sector, while other activities involve public-private partnerships.

Related Courses

Governmental Accounting