What is meant by ‘Public Good’?

A 'Public Good' is defined by two primary characteristics: non-rivalry and non-excludability [2]. Non-rivalry implies that one person's consumption of the good does not reduce its availability for others, while non-excludability means there is no feasible way to prevent individuals from enjoying its benefits [1]. Consequently, the benefits of public goods are indivisibly spread among the entire community rather than being restricted to a single consumer [3]. Examples include national defense, street lighting, and clean air [2]. Because private enterprises cannot easily collect fees for such goods due to the 'free-rider problem,' they are typically provided by the government and funded through taxation [4]. While the government provides them, the defining economic feature is the nature of their consumption benefits being collective and indivisible [3].

Sources

1. [1] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > Debt > p. 81
2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > 9.1 Introduction > p. 284
3. [3] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > Allocation Function of Government Budget > p. 67
4. [4] Exploring Society:India and Beyond ,Social Science-Class VII . NCERT(Revised ed 2025) > Chapter 12: Understanding Markets > Providing public goods > p. 267