Vaccinating all residents above the age of 18 years towards COVID-19 will cost Rs 67,193 crore, of which states collectively will incur Rs 46,323 crore, India Ratings and Research (Ind-Ra) mentioned on Thursday.
As the second wave of COVID-19 sweeps the nation with alarming pace and severity, the federal government has introduced a liberalised and accelerated Phase 3 technique of COVID-19 vaccination. Under this scheme, all individuals above 18 years of age will be eligible to get COVID-19 vaccine doses from May 1.
“This means that the total size of the population that will now be eligible for vaccination would be 84.19 crore out of the total population of 133.26 crore,” it mentioned a word.
India Ratings calculated that this “may cost Rs 67,193 crore, of which the Union government will incur Rs 20,870 crore and state governments together will incur Rs 46,323 crore”.
The authorities has made the pricing, procurement, eligibility and administration of coronavirus vaccines versatile. While the vaccination drive will proceed as earlier than, offering free vaccination to precedence populations comparable to healthcare employees, frontline employees and inhabitants above 45 years of age, states and Union territories have been allowed to acquire further COVID-19 vaccine doses immediately from the producers and open-up vaccination to individuals above the age of 18 years.
As a outcome, Indian vaccine producers would now be supplying 50 per cent of their manufacturing to the central authorities and the stability 50 per cent could be accessible for procurement by the state governments and the open market (personal hospitals).
Ind-Ra mentioned the Union authorities has already spent Rs 5,090 crore on procuring 21.4 crore vaccines from Serum Institute of India and Bharat Biotech.
Assuming two doses of vaccines at Rs 400 per dose for brand spanking new vaccine procurement and 5 per cent wastage, the cost for the central authorities will come to Rs 62,103 crore for 155.4 crore doses, it mentioned.
The whole of the 2 involves Rs 67,193 crore which “works out to be just 0.36 per cent of GDP,” it famous. “If we split it between the Union government and state governments, then the fiscal impact on the union budget would be 0.12 per cent of GDP and on the state budgets would 0.24 per cent of GDP”.
The most impression is prone to be on Bihar (0.60 per cent of gross state home product or GSDP), adopted by Uttar Pradesh (0.47 per cent), Jharkhand (0.37 per cent), Manipur (0.36 per cent), Assam (0.35 per cent), Madhya Pradesh (0.30 per cent) and Odisha (0.30 per cent).
“Since the antibodies generated by these vaccines are likely to last for 12-18 months, this expenditure would be a recurring expenditure on union and state budgets,” it mentioned. “However, many states such as Kerala, Chhattisgarh, Bihar and Madhya Pradesh have already announced that the government will bear the cost of vaccination. Vaccinations by large corporate groups will reduce pressure on the state/central budget.”
Ind-Ra believes that given the magnitude of the issue and the financial cost the second wave of COVID-19 pandemic is prone to inflict on the economic system, it’s too small an quantity.
“However, greater than the cash spent, the crucial issue could be how quickly the specified stage of vaccination may be achieved.
“Therefore, the decision to allow the restricted emergency use of Russian vaccine Sputnik-V and other vaccines approved by the US, EU and WHO is another step in the right direction. This will only accelerate the vaccination effort in the country. The first batch of Sputnik V is expected to be delivered to India by April-end,” it added.