4) Help reduce the presence and size of the public sector, with its monopolistic tendencies and bureaucratic support. The privatisation of public services tends to burden the public, especially if charges are raised for privatised services that may not improve with privatisation. Private interests are only interested in profitable or potentially profitable activities and enterprises. Thus, the government will be saddled with unprofitable and less profitable activities, reinforcing the impression of SOE inefficiencies. • Privatisation may postpone a fiscal crisis by temporarily reducing fiscal deficits, but the public sector would lose income from profitable public sector activities, and be stuck with financing and subsidising unprofitable ones.

Source: The Edge Markets October 29, 2016 10:18 UTC