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The Modi government may increase the budget allocated for procurement and distribution of COVID-19 vaccines to Rs. 450 billion for fiscal 2021-22, according to a report by news agency Reuters. This would translate to an increase of 25% from the amount announced by the Central government in its budget presented earlier this year in February. Prime Minister Narendra Modi on Monday, in his address to the nation, announced free vaccines for all citizens above the age of 18 years.
Sources have told Reuters that due to the increased responsibility of vaccination following PM’s address, the central government will increase the vaccine budget to Rs. 450 billion. According to another source, the cost of domestic vaccines has also increased forcing the government to increase its budget.
PM Modi in his address to the nation assured that the central government would bear the entire cost of vaccination and states would no longer be required to procure vaccines. He further said that vaccines would be available for all eligible citizens in India for free from June 21.
21 जून, सोमवार से देश के हर राज्य में, 18 वर्ष से ऊपर की उम्र के सभी नागरिकों के लिए, भारत सरकार राज्यों को मुफ्त वैक्सीन मुहैया कराएगी।
वैक्सीन निर्माताओं से कुल वैक्सीन उत्पादन का 75 प्रतिशत हिस्सा भारत सरकार खुद ही खरीदकर राज्य सरकारों को मुफ्त देगी: PM @narendramodi
— PMO India (@PMOIndia) June 7, 2021
It may be recalled that the Union finance minister Nirmala Sitharaman had allocated an amount of Rs. 350 billion for vaccination in the government’s annual budget this year. Following this, on May 1, the central government brought a new vaccine policy under which the centre would purchase 50% of doses from vaccine makers and provide them to states while 25% would be procured by the state governments on their own. This new policy came after a lot of requests from the state leaders.
However, the new policy was widely criticised by the states after their failure to get vaccines supplies from the makers. Some foreign vaccine makers like Pfizer and Moderna also made it clear that they would deal only with the central government with regard to the supply of vaccines.
Among other decisions, the prime minister also announced trials of a new nasal COVID-19 vaccine and free ration for the poor under PM Garib Kalyan Anna Yojana till Diwali.