ABSTRACT
This chapter discusses a comprehensive analysis of the relationships, especially the cash relationships, between public enterprise and the public exchequer. Though the relationships between the budget and public enterprise are fundamentally similar in the case of developed and developing countries, there are several special considerations that merit emphasis in the latter case. Corroboratory data can be produced in terms of the government’s expenditure on ‘economic services’, whose major components are agriculture, forestry, fishing and hunting, transport, and communications, as a percentage of total expenditure. The term ‘share in profits’ is refers to any transfer to the exchequer of the profits of an enterprise over and above interest and dividend. Subsidies refer to all kinds of subventions, whatever the name used, offered by the government – towards operating costs or administrative costs, or specific functions, or for meeting deficits. In general, institutional arrangements grossly limit the exchequer incomes derived from public enterprises.
