Q.8:- Education is considered an important input for the development of a nation. How?
Expenditure on education is an important source of capital formation. Education is an important source of human capital formation, because:
- It generates technical skills and creates a manpower which is suited for improving labour productivity. It, thus, results in sustained economic development.
- It tends to bring down birth rate which, in turn, brings decline in population growth rate. It makes more resources available per person.
- It results in social benefits since it spreads to others who may not be skilled. Thus, investment in education leads to higher returns in future.