Finance Ministry Clarifies, it is Factually Incorrect to State that there is no Provision for Expenditure on COVID-19 Vaccination by Centre

The Finance Ministry today said, it is factually incorrect to state that there is no provision for expenditure on COVID-19 vaccination by the Central Government. It said, the amount of Rs 35,000 crore shown under Demand for Grants titled Transfers to States in no way implies that expenditure cannot be incurred by the Centre. 

Rejecting media reports, in a statement the Ministry said, vaccines have actually been, and are being, procured by and paid for by the Centre through this head of account. It said, the use of this Demand for Grants has several administrative advantages. Firstly, because expenditure on vaccines 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 said, this grant is exempted from the quarterly expenditure control restrictions applicable to other demands. It said, this helps to ensure that there is no hindrance in the vaccination programme. The amount provided under this head for vaccinations is actually operated by the Ministry of Health. Vaccines are passed on to the States as grants in kind and the actual administration of vaccines is being done by States. It said, further, there is enough administrative flexibility to change the nature of the Scheme between grants in kind and other forms of grants.