3.2.3—Direct provision

Direct provision means the government supplies a good or service itself, often using tax revenue or public agencies, rather than relying only on private purchases.

It can address public-good free riding, merit-good under-consumption or equity goals, but provision still has opportunity costs and may involve waiting, rationing or inefficiency.

A state may provide vaccination clinics or flood defence directly so access does not depend entirely on individual willingness or ability to pay.

Public provision does not mean unlimited supply or zero economic cost; inputs remain scarce.