According to the report "Health Expenditure Australia 2016-17 " prepared by the Australian Institute of Health and Welfare, Australia spent nearly $181 billion on health in 2016-17: this is more than $7,400 per person and 10% of overall economic activity

More than two-thirds (69%) of health spending is funded by the Australian Government and state and territory governments ($75 billion and $50 billion, respectively) and governments were the main drivers of the recent growth in spending. Total government spending on health grew by 6.8% in real terms in 2016-17 to $124 billion, well above the average growth rate for the previous 5 years of 2.6%.

Tax revenue is the main source of government income used to fund public services, including health care. Due to the relatively rapid growth in government spending, the ratio of government health expenditure to tax revenue increased in 2016-17 following a period of relative stability (rising by 0.8 percentage points to 27.1%).

Real growth in health expenditure over the decade to 2016-17 was similar for the Australian Government and state and territory governments (4.5% and 4.6%, respectively), though average growth in the last 5 years was greater for states and territories (3.1% compared with 2.4%).

In contrast, in 2016-17, non-government sources recorded the lowest growth rate in health spending in the decade since 2006-07: 0.2% compared with the decade average of 4.8%. Around $30 billion of this spending came from individuals

Based on the above descriptions answer the following questions:

(a) What are the arguments for Government spending on health care?

(b) What are the arguments against Government spending on health care?

(c) Should the Australian Government provide as much free and subsidised health care as it does? Conclude and justify your answer.