(1) The government's public investment is an important way to make up for market failure and allocate resources effectively.

(2) Public investment by the government is conducive to strengthening the position of the state-owned economy in important industrial fields related to the national economy and people's livelihood.

(3) Government public investment is an important means for the government to carry out macro-control.

Public investment refers to the investment made by a government or an international organization for the public interest. For example, government loans for the construction of public facilities, roads or water conservancy projects, or loans from international financial organizations for the development of the above projects are all within the scope of public investment.

Investment can be divided into government investment and non-government investment, that is, public investment and private investment.

The division methods of public investment and private investment are generally divided into two categories: first, according to the purpose of investment expenditure; The other category is divided by the source of investment funds. According to the specific purpose of investment expenditure, it means that investment expenditure for providing public goods and services is regarded as public investment, while investment expenditure other than public goods and services is regarded as private investment.

This inevitably involves the definition of the concept of "public goods and services". Public goods and services can be called public goods for short, as opposed to private goods. The key to distinguish public goods from private goods in economics lies in whether the consumption of goods is non-competitive and non-exclusive. * * * The utility of articles is enjoyed by the whole society, and its consumption is non-competitive and non-exclusive. Non-competitiveness means that once the supply of * * * is provided, the additional resource cost of another consumer of the goods and services is zero; Non-exclusiveness means that once * * * materials are provided, they are either very expensive or impossible to prevent anyone from consuming such materials and services. The utility of private goods is owned and enjoyed by individuals, and their consumption is competitive and exclusive. From the source of investment funds, it means that financial investment from the central and local governments is regarded as public investment, and social investment from other channels is regarded as private investment.

These two standards are not completely separated, because most public goods and services are provided by the central and local governments with financial funds, but * * * goods are also provided by the private sector, and private goods are also provided by government departments. Because the criteria for dividing government or private sector investment funds are clearer, it is more common to divide public goods and private goods by the second criterion.