Only Rs. 4,744 Cr utilized from vaccine budget of Rs. 35,000 Cr

The slow utilisation of a sanctioned budget of Rs 35,000 crore comes at a time when maintaining the momentum in vaccination drive is extremely critical to slow down the unprecedented rise in new Covid infection cases, which has seen, on an average, more than 3.86 lakh new cases and over 3,600 deaths per day in the last week, writes ETV Bharat Deputy News Editor Krishnanand Tripathi.

Hyderabad: The Union government has so far spent Rs 4,744 crore on the Covid vaccination programme, the amount which is less than 14% of the total vaccination budget for the current fiscal as the world’s largest vaccination drive has suffered a series of setbacks, including slow pace of vaccination and shortage of vaccines in some states. The slow utilisation of a sanctioned budget of Rs 35,000 crore comes at a time when maintaining the momentum in vaccination drive is extremely critical to slow down the unprecedented rise in new Covid infection cases, which has seen, on an average, more than 3.86 lakh new cases and over 3,600 deaths per day in the last week.

In a series of tweets, Anurag Thakur, the minister of state for finance, said that the government has spent a total Rs 4,744.45 crore on vaccination drive as it paid Rs 3639.67 crore to the Serum Institute of India (SII), the world’s largest vaccine manufacturer and Rs 1,104.78 crore to Hyderabad based Bharat Biotech.

The payment to the SII includes an advance payment of Rs 1732.50 crore for a follow up order to supply 11 crore doses in May, June and July and also the payment of Rs 1907.17 crore against the billed amount of Rs 2353.09 crore for the initial order to supply of more than 15 crore doses.

According to Anurag Thakur, the SII has supplied a total 14.344 crore doses of Covishield so far against the total order of 26.60 crore doses that have been placed by the government.

Similarly, in case of Hyderabad based Bharat Biotech, which produces indigenous Covaxin, the government has so far paid a total amount of Rs 1104.78 crore for supply of total 8 crore doses. The amount includes an advance payment of Rs 787.5 crore for supply of 5 crore vaccine in the second tranche, which will be supplied in May, June and July.

However, it is not clear from the minister’s tweets how much money has been paid to the two vaccines makers in the last fiscal and what amount has been paid from this year’s vaccination budget of Rs 35,000 crores.

The minister’s tweets come in the wake of mounting criticism that the Centre delayed the placement of orders to local manufacturers that slowed down the pace of the vaccination programme that led to unprecedented rise in Covid cases and deaths in the country. The opposition also accused the Centre for delaying the approvals to the vaccines in use in other countries which could have rapidly expanded the vaccination coverage in the country.

Early this week, the Centre rebutted the news reports that it had not placed any fresh order with the country’s two vaccine makers after March this year. In a press statement, the health ministry said such news reports were factually incorrect as the Union government has placed fresh order for supply of 16 crore vaccines on April 28, 11 crores from the SII and 5 crores from Bharat Biotech and made an advance payment of Rs 2,520 crores to the two vaccine producers the same day. The amount accounts for just 7.2% of the total sanctioned budget of Rs 35,000 crore for the current fiscal.

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The total money

While presenting the Union budget for the current fiscal, the finance minister Nirmala Sitharaman had announced a budget allocation of Rs 35,000 crore for Covid vaccination drive.

“I have provided Rs 35,000 crores for Covid-19 vaccine in BE 2021-22. I am committed to provide further funds if required,” the finance minister had said adding that the government had increased the health budget from Rs 94,452 crores in FY 2020-21 to Rs 2,23,846 crores in the current fiscal, an increase of 137%.

The latest data shared by the minister of state for finance Anurag Thakur on Thursday reveals that the Centre has so far made the payment of just Rs 4744.45 crores in the previous and current fiscal, which is equal to 13.55% of this year’s vaccine budget.

17.15 crore doses given to States

According to the latest data, the Centre has so far (as on May 6) provided more than 17.15 crore vaccine doses to States and Union Territories free of cost.

Health workers have so far administered more than 16.24 crore vaccine doses, while more than 13.09 crore persons have received at least one dose, more than 3.14 crore beneficiaries have received two doses of Covid vaccines.

Vaccination programme suffers setback

Prime Minister Narendra Modi launched the world’s largest vaccination drive in January this year. In the first round, the country aimed to cover three crore frontline workers, including health workers, sanitation workers and members of security forces and fire brigade.

The second phase was launched in March this year that aimed to cover the population above the age of 60 years. However, the next month the government relaxed the criteria to cover all the people above the age of 45 years as nearly 90% Covid fatalities were reported from this age group.

But the decision to restrict the vaccination to the people above the age of 45 years came under heavy criticism from the opposition, which demanded free universal vaccination.

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An unprecedented rise in the new infections, which rose from little over 11,500 new cases on March 1 to over 3.9 lakh new cases on May 1 stunned the country and the world and highlighted the need for accelerating the current pace of vaccination.

It also forced the government to open vaccination to all residents above the age of 18 years under the new policy which also permitted States and private hospitals to directly procure the vaccines from producers. But the increased rush at the vaccination centres also led to shortage of the vaccines at several places.