Establish the need for acquiring information relating to health and education expenditure for the effective utilisation of human resources Economics CBSE class 11 ncert

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Establish the need for acquiring information relating to health and education expenditure for the effective utilisation of human resources. -Economics CBSE class 11 ncert

Book: Indian Economic Development
Chapter 5: Human Capital Formation in India
(NCERT textbook questions)


By:Aparna-Dasgupta

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Information related to educational institutions, employment level, wages and availability of health facilities is essential as it is an integral part of human capital. The productivity of labour can be enhanced by information related to educational institutions which offer specialised skills. The government can take required steps to improve the educational system and spread awareness programmes to educate people. If there is proper information on the cost and benefits of the available educational institutions, it enables people to choose the right institution to educate and improve their skills according to the requirement of the job market.   
Health is one of the important sources of human capital formation. The various forms of medical facilities available in society enable a person to remain active, healthy and enthusiastic in production activities. A healthy population can make optimum contribution to the development of the nation. Expenditure on preventive and curative medicine and provision of clean drinking water and sanitation determine the health status of people. However, the actual potential productivity level will be higher than the cost of acquiring information on hospital facilities provided by the government and other private institutions.  
So, information relating to education and health becomes an essential source of human capital formation. If the government provides proper and accurate information regarding the status of education and health facilities in the economy, then it becomes easier for policy makers to formulate policies to benefit human capital formation.

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