Public capital

economic-dictionary

Public capital is that type of capital owned by the state or public. In other words, the money that the State has to meet its obligations.

In other words, public capital is that capital that the State has to meet its obligations. This comes from the payment of taxes by citizens, taxes in general, as well as various activities carried out by the State itself. Within the classification of the different types of existing capital, public capital stands out because of its ownership.

In this sense, when we speak of the owner of this capital, it is the State and its corresponding institutions that own it and, therefore, those that administer it. In other words, it encompasses a large amount of public goods and infrastructure; all of them, under the fan of a national sovereignty.

The correct management of public capital allows companies to have returns in the form of economic well-being, as well as the improvement of their living conditions. In other words, the Administration manages public resources for the purpose of returns, thereby creating value.

This usually translates into better infrastructure and better economic ratios. Symptoms of these improvements are improvements in health, safety or growth in life expectancy.

Characteristics of public capital

The set of assets that make up the public capital must comply with a series of conditions to be highlighted:

  • Productivity: Public institutions and bodies use this capital, and public resources, to obtain economic returns and, therefore, benefits for society.
  • Diversity: There is a large number of components of public capital, covering all types of sectors on a day-to-day basis, both economic and social.
  • State origin: The management of this capital resides in the management of the Administration. The resources to be exploited belong to the national patrimony and to the fiscal and collection work of each territory.

Examples of public capital

As indicated above, public capital is identifiable in practically all everyday areas.

In this sense, it is possible to identify, as examples of capital with a public nature, all types of infrastructures that we see in our environment. Some notable cases are the following:

  • Public care services: Medical, educational and care structures, or protection, for the citizen stand out. Examples of this are hospitals, forest services or schools.
  • Transport and logistics: Within this group there are publicly managed highways and highways, fluvial means or airspace control. At the same time, the different examples of public transport can be found.
  • Energy supply: Public services that provide citizens with access to different energy resources and running water.
  • Waste treatment: The management of landfills, sewerage or the emulsion of polluting products also has a public factor. The states use their capital to attend to sustainability, as well as to abide by environmental legislation.
  • Conservation and surveillance of heritage: Different countries also have cultural resources, such as works of art, monuments, museums and other elements that must be maintained and conserved.

Tags:  accounting banks finance 

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