Two friends were arguing about the importance of health spending. Chintoo said “Health expenditure directly increases the supply of healthy labour force and is, thus, a source of human capital formation.” Mintoo disagreed. Whom do you agree with?

Chintoo

Chintoo is correct as expenditure on health makes a person healthy as compared to a sick person who has to abstain from work and there is loss of productivity. A healthy person on other hand will be present at work and more productive. Human capital means when human resources are educated and healthy, thereby having knowledge, skills and experience and ar more productive.