QS Study

Government Departmental Organization Forms of State Enterprise

If the state gets the ownership on continual at any business directly or indirectly incest it that business is called as the state enterprise. The state enterprise refers to those business units which are partly or wholly owned and controlled by the government. The formation, operating, and control systems are not same in every state enterprise.

Government Departmental Organization: This refers to a department of the state dealing in some products or services and the state controls the affairs of that department. For example, the railway department, the post and telegraph department, the food department etc. These departments are directly controlled, managed, and financed by the state.

Features of government department organization: The features of government departmental organization are as follows:

Control: These departments are like the other departments maintained by the government. All persons working in each department are accountable to the head of the department concerned and their ultimate control in the respective ministries.

Expense: The expenditures of these departments are made in accordance with the annual budget passed by the legislatures and the revenues of these departments go to the treasury.

Status: The employees of these departments are fully fledged government employees and are subject to the discipline as required in a government service.

Sovereignty: These enterprises have the sovereign immunity of the state. No legal action can be taken against them without the sanction of the government.