Centre’s vaccine expenditure likely to top 50,000 crore

The Central government’s expenditure on vaccination is likely to top Rs 50,000 crore which is notably higher than the expected budget of Rs 35,000 crore.

The amount, however, is unlikely to put burden on the finances of the government.

The figures arise from the ongoing trends and do not keep in account the prospect of vaccinating Indian population under the 18 years of age.

The Indian government, like China and Indonesia, is looking to harness special windows form multilateral agencies such as ADB to raise around $2 billion at concessional prices.

As it will ensure that there isn’t any pressure on market borrowings, it will also leave enough room for private sector to raise funds, an official was quoted as saying in a TOI report.

The government had promised higher spending in several arenas even as the analysts predict that the fiscal deficit might end up being better this year than an estimated 6.8% of the GDP.

Recently, data was released by the controller general of accounts displaying that Centre’s fiscal deficit is at Rs 5.3 lakh crore during the first half of FY22.

This can be termed as the best fiscal outcome in about 20 years, facilitated by healthy revenue and managed spending seen after lifting of lockdown curbs.

Excise duty receipts went up by 79% compared to last year, on the back of global crude oil prices.

Tax revenues were up to 59.6% of full year budget estimates, higher than the 28% growth in FY21.