The Nature of the State

GOVERNMENT CONTROL

ANCHETA, Kenzie M.BSED 3F-1

GOVERNMENT CONTROL

Under the direct control of

the government

Government controlled entities are state public

sector organizations identified as:

• General Government Sector• Public Non-financial Corporations Sector• Public Financial Corporations Sector.

General Government

Sector

General Government

SectorIncludes all institutional units whose output is intended for

individual and collective consumption and

mainly financed by compulsory payments made by units

belonging to other sectors, and/or all institutional units principally engaged in the redistribution of

national income and wealth.

Four Sub Sector• Central

Government• State Government• Local Government

• Social Security Funds

Central Governmentis the political authority that

governs an entire nation.

 State Government•  is a unit of government

that specifically makes and enforces laws for a state.•  are responsible for

administering to the local needs and problems of a particular state or region.

Local Government• is the public administration of

towns, cities, counties and districts. 

• city utilities, libraries, fire departments, public swimming

pools, parks, local law enforcement and many other areas of our everyday lives.

They generally involve compulsory contributions by employees or employers or

both, and the terms on which benefits are paid to recipients

are determined by a government unit.

Social Security Funds

Social Security Funds

• Old-Age and Survivors Insurance (OASI) 

• Disability Insurance (DI)

Public Non-financial

Corporations Sector

• engaged in the production of market goods and/or non-financial services.• Government owned

trading business

Public non-financial Corporations Sector

Public non-financial Corporations Sector

• Retailers• Manufacturer

s• Utilities• Business

service providers (such as accountancy and law firms)

• Haulage companies• Airlines• Construction

companies and Farms.

Public Financial Corporations

Sector

Public Financial Corporations Sector

Role of the government in the

economy.

Public Financial Corporations Sector• Economic efficiency• Income distribution

•Microeconomics Stabilization

Public Financial Corporations Sector

Economic efficiency- Relationship of

government and markets.

Public Financial Corporations Sector

Income distribution-Adam Smith, Thomas

Malthus and David Ricardo- is how a nation’s

total GDP is distributed amongst its population.

Public Financial Corporations Sector

Macroeconomics Stabilization

- Stabilize performance, structure, behavior, and

decision-making of an economy.

…

Are you ready to answer the

questions?

Question # 1Is the political authority that governs an entire

nation.a. Central Governmentb. State Governmentc. Local Governmentd. Social Security Funds

Question # 2Engaged in the production of market

goods and/or non-financial services.

a. Public non-financial Corporations Sectorb. Private Financial Corporation Sectorc. Local Governmentd. Social Security Funds

Question # 3 Concern in the Role of the

government in the economy.a. Public non-financial Corporations Sectorb. Private Financial Corporation Sectorc. Public Financial Corporation Sectord. General Government Sector

Question # 4It is the public administration of towns, cities, counties and

districts.a. Central Governmentb. State Governmentc. Local Governmentd. Social Security Funds

Question # 5It stabilize performance, structure, behavior, and

decision-making of an economy.a. Economic efficiencyb. Income distributionc. Microeconomics Stabilizationd. Macroeconomics Stabilization

We don’t need a weakened government but a strong

government that would take responsibility for the rights of

individual and care for the society as a whole.

-Vladimir Putin