Budget heading for vaccination expenditure does not inhibit Centre from using funds, says Finance Ministry

New Delhi, May 10: The Finance Ministry on Monday said provisioning Rs 35,000 crore-expenditure for vaccines in the Union Budget for FY22 under the title "Transfers to States" does in no way inhibit the central government from using the funds to buy COVID-19 shots.

 

 

The amount of Rs 35,000 crore provided in the Union Budget for fiscal year starting April 1, 2021 (FY22) under the Demand for Grants No. 40, titled "Transfers to States" has been done for several administrative advantages, including expenditure under such head being exempted from the quarterly control restrictions. Also, it allows the Union government to procure the vaccines and pass them on to the states as grants in kind.

 

 

 

 

 

Refuting reports that no provision for expenditure on COVID-19 vaccination has been done by the central government, the finance ministry said, "vaccines have actually been, and are being, procured by and paid for by the Centre through this head of account (Demand for Grants No.40 Transfers to States)".

 

 

Since expenditure on vaccine is one-off expenditure outside the normal Centrally-Sponsored Schemes of the health ministry, separate funding ensures easy monitoring and management of these funds, the ministry noted.

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