Karthikeyan

Other public-sector enterprises are run by local governments (municipalities). They handle many community services.

Two types of services they provide:

1. Free services (paid by local taxes)

These don’t charge people directly:

• Street lighting

• Government schools

• Public parks

These are funded using money collected from local taxpayers.

2. Paid services (expected to at least break even)

These services charge a fee:

• Street markets

• Swimming pools

• Theatres

If these services don’t earn enough, the government will give subsidy money to cover the loss.

Trend today

Many local governments are privatising (selling to private companies) some services to:

• Reduce costs

• Reduce burden on taxpayers

• Increase efficiency