Those who are Government servants, Strive to be emblems of the Nation's pride, Serving people is serving Him, Is a thought they must abide.

UDYAM SHASTRA- Chapter 2,Verse 4

Key Objectives:

The students learn about the economic role government traditionally plays in local communities. They learn how the taxes individuals and businesses pay relate to the circular flow of money , goods and services , and labor . In addition , they act as members of a village punchayat /municipal council and recommend solutions to problems facing the community.

This module and its associated exercises should help the students to :

Identify example of economic goods and services that government often provides.

Use a circular flow diagram to explain the role of government in the economy.

State an opinion about the appropriate economic role of government.

Enterprise Concepts:

Government.: The body of people, usually elected, who provides the overall facilities and framework for smooth functioning of a community or society .

A village for instance has a panchayat, a city has a municipality, a district has a Zilla Parishad (District Board), a state has a State Government and the country has a Central Government.

Enterprise Skills:

The student 'Activities' in each lesson are designed to clarify the ENTERPRISE CONCEPTS of the lesson and develop some ENTERPRISE SKILLS (E.SKILLS). The E.SKILLS included in a lesson may not be exhaustive, but are indicative. E.SKILLS stated in a lesson elsewhere may also get addressed through the activities of a particular lesson.

Some useful E.SKILLS are dealt with below:

Organisation structure analysis.: An entrepreneur needs to understand the structure of institutions like Government Departments that could influence his/her enterprise functioning.

For eg. Licensing departments, various tax departments etc. He also needs to analyse and comprehend structure of other organisations that he/she may have to deal with for eg. Purchase department , Accounts department ,Material inspection department , Supply department etc. of clients and suppliers.

This E. skill to analyse structures of organizations is broadly referred to as " Organisation Structural Analysis".


Activity 1 - Lata needs a health department permission.

Activity 2 - The circular flow of economy.

Activity 3 - If I were a corporator.