May 27, 2023
Free vaccine, food will cost govt Rs 1 lakh crore over budgeted outlay | India News - Times of India

NEW DELHI: The Centre’s vaccine invoice is predicted to climb to Rs 45,000-50,000 crore, in opposition to the budgeted Rs 35,000 crore, as manufacturing of anti-Covid pictures will increase and the (*1*) takes on the duty of procuring and supplying 75% of domestically made pictures.
In addition, it will spend round Rs 91,000 crore between May and November in supplying free food grains to greater than 80 crore beneficiaries, as a substitute of Rs 26,000 crore estimated for May and June.
Put collectively, the Centre’s spending will rise by round 1.05 lakh crore over the budgeted figures. Although there are a number of variables on the cost of vaccines, together with doable buy from firms similar to Pfizer in addition to Biological E pictures, authorities sources mentioned that preliminary estimates level to a rise and guaranteed that offering funds will not be an issue. Almost all state governments have promised free vaccination in opposition to the virus.
With the Centre deciding to take up the complete tab, they stand to save cash.
The Centre has already taken parliamentary approval to spend Rs 35,000 crore on vaccines and finance minister Nirmala Sitharaman had mentioned in her funds speech that she will present extra funds, if wanted.
Although the federal government has made it clear that its precedence is to make sure vaccines for all and food to the susceptible sections, economists mentioned the dual strikes will impose further cost on the exchequer, requiring the Centre to transform its calculations.
Economists mentioned the strikes will incur an extra cost of 0.4-0.5% of GDP.

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