Advantages of privatization

Advantages of privatization

1. Improve Efficiency :- The Govt owned or run organization are normally have low efficiency ,therfore,one of the advantage is to improve the efficiency
2. Promote Open Market :- the second advantage to create an open competition in the market, normally public organization have some advantage over private organization. Therefore it is difficult for private organization to compete with public organization.
3. Focus on Governance :- The important role of the Govt is to govern the country and not to run the business, therefore, privatization the Govt can focus on its basic objective.
4. A Source of Revenue :- The receipt from the privatization proceed are source of revenue which can be utilized in development project.
5. Tax Collection :- The privatization organization are loss making organization and no tax are paid by the organization, some organization also have different tax exemption. By going in the hand of private sector either they will be performing and paying taxes or will be closed by management.