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Discuss the merits and demerits of departmental undertakings. |
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Answer» The merits of departmental undertaking are: 1. The government enjoys full control over the departmental undertaking. 2. The risk of misuse of public funds is comparatively less in the case of a departmental undertaking, as it is subject to budgetary, accounting and audit controls. 3. It has greater accountability to the parliament. The demerits of departmental undertaking are: 1. A departmental undertaking is subject to interference by the ministers, members of political parties and chief Government officials. Therefore, the smooth working of a departmental undertaking is disturbed. 2. Business losses are not taken seriously by a departmental organisation. 3. A department undertaking suffers from the absence of continuity of policies because of frequent change of government officials and ministers and change of government. |
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