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Govt’s vaccine spend in April at Rs 4,400 cr

If all states absolutely implement the free vaccination drive, it may price them about Rs 30,000-40,000 crore (for 106 crore doses for 53 crore adults) at Rs 300/dose for Covishield and Rs 400/dose for Covaxin.

The Centre spent Rs 4,400 crore, or 12.6%, of its FY22 Budget outlay of Rs 35,000 crore for Covid vaccination in April, a senior official advised FE. While it’s too early to say whether or not further allocation could be wanted for the programme on this fiscal, on condition that states are additionally funding vaccination for individuals within the age group of 18-44 years, the fee to the central exchequer may very well be reined in, one other official stated.

The Centre’s vaccination drive is constant as deliberate earlier, offering free vaccination for important and precedence inhabitants as outlined earlier (healthcare staff, frontline staff) and vaccination for individuals above 45 years of age at authorities amenities.

The Centre may have at its disposal 50% of the vaccines being equipped by the producers. The Centre has been procuring and passing on vaccines to the states as grants in sort and the precise administration of vaccines is being finished by states.

Both Serum Institute of India (Covishield) and Bharat Biotech (Covaxin) have been supplying their vaccines to the Centre for Rs 150/dose.

For Covid-19 vaccination, the Centre’s Budget for FY22 has made a provision of Rs 35,000 crore to cowl 50 crore individuals (Rs 700/individual for 2 doses, together with the vaccine price of Rs 400-500). Since the value mounted by the Centre for its vaccine procurement (Rs 300 for 2 doses) is decrease than its estimate of Rs 400-500 for 2 doses, it has some headroom to cowl extra individuals throughout the current price range allocation.

After the Centre introduced a ‘liberalised and accelerated’ Covid-19 vaccination programme starting May 1, the place all above 18 years of age might be eligible to be vaccinated, states have supplied to vaccinate this age group freed from price at authorities amenities. Vaccine producers have been empowered to launch as much as 50% of provides on to state governments and within the open market at pre-declared costs, a transfer that will increase availability of the prophylactics to the individuals.

If all states absolutely implement the free vaccination drive, it may price them about Rs 30,000-40,000 crore (for 106 crore doses for 53 crore adults) at Rs 300/dose for Covishield and Rs 400/dose for Covaxin. Of course, the precise price could be a lot much less on condition that 100% vaccination is unlikely; additionally a phase of the healthcare staff and different frontline staff who’ve already acquired vaccine are within the 18-45 age group whereas some would bear price themselves at personal hospitals. For the personal hospitals, SII is charging Rs 600/dose whereas Bharat Biotech Rs 1,200/dose.

Health expenditure, which was solely about 5% of states’ annual combination expenditure in recent times, rose considerably in FY21 on account of a rush to construct healthcare infrastructure and buy of medical gear to battle Covid-19.

India (Centre and states) spend 1.26% of GDP (FY20BE) on well being, manner behind Brazil at 6.8%, Turkey 10.5% and Mexico 11.6%. States have been estimated to spend about Rs 1.9 lakh crore in FY20BE whereas the Centre about Rs 77,000 crore.

According to the Constitution, the well being sector falls beneath the state checklist and, thus, the availability of financing public well being expenditure is primarily the accountability of state governments. However, the Centre additionally implements numerous centrally sponsored schemes such because the National Health Mission (Urban and Rural), National Mission on AYUSH and the Ayushman Bharat scheme.

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