Question

• Why might budgeting in the public sector be different from the private sector? Are there different goals between that of a city and that of a private corporation?

Answer 1

private sector is a sector which is not controlled or owned by the government. Public sector is a sector which is fully controlled or owned by the government. For example public sector bank is a kind of bank where the majority shares are owned by the government. Budgeting in the public sector and private sector are different from each other.They are entirely different from each other mainly by their purpose, processes of both sectors .The accounting of both sectors are completely different and decision making process of both sectors are different. The main aim is to maximize their profit and market sharing and also to minimize expenses.Main goals of private cooperation are they reduce liability mainly between the owners and their business. Tax benefits are high in private cooperation.