public sector

The part of the economy that is owned and controlled by the state, namely central government, local government, and government enterprises. In a command economy, the public sector provides most of the resources in the economy. The opposite of the public sector is the private sector, where resources are provided by private individuals and business organizations.

Most goods and services provided by the public sector in any economy are allocated on the basis of need rather than on ability to pay. For example, in the National Health Service, patients are treated because of the seriousness of their medical complaint and not because of how much they can afford to pay in fees. However, some products produced by the public sector are sold; for example, rail services and postal services. Most of this production has been privatized in the UK since 1979.