Question

Differentiate between private investment and public investment.

Answer 1

	Private investment	Public investment
1.	Private investment refers to the expenditure incurred by the private entrepreneurs on the purchase of capital goods like plants, machinery, factories, offices, inventory, buildings, etc.	Investment undertaken by the government is known as public investment. Government often invests in projects like roads, dams, schools, colleges, hospitals, gas and water supply, transportation, housing, etc.
2.	To earn profit.	To promote social welfare and development.
3.	Funded through private savings or loans.	Funded through tax revenues or government borrowings.
4.	Factories, offices, private machinery, shops.	Roads, bridges, schools, and hospitals are built by the government.
5.	Profit-generating sectors.	Infrastructure and public utility services.