Both education and health have been considered as important for human capital formation. The provision of basic education and health facilities has been accepted as a goal in All societies. It is important that these facilities be made available free for the poor classes who can not afford them in order to ensure better skills and health of manpower. However, the private sector will not be forthcoming in making large investments in non-profitable or free distribution of such services. Hence, the government has to play an important role.