1. Health infrastructure:
Expenditure on health is an important source of human capital formation. Health expenditure directly increases the supply of healthy labour force and is a source of human capital formation.
Preventive medicine, social medicine, curative medicine, and provision of clean drinking water and good sanitation are the various forms of health expenditure. In short provision of health facilities directly improve the efficiency of human capital.
2. Expenditure on migration:
Existence of unemployment is the main reason for the rural-urban migration in India. People migrate in search of jobs. Technically qualified persons migrate to other countries because of higher salaries that they may get in other countries.
Migration in any of these cases involves cost of transport, higher cost of living in the migrated places. The enhanced earnings in the new place outweigh the cost of migration. Hence expenditure on migration is a source of human capital formation.