Budget 2022-23: Rs.5000 Crore Outlay for Vaccine Spending in FY23 FY23

For the fiscal year 2021-22, the government set out Rs.35,000 crore in the recent budget for Covid immunization. In the new estimates, the amount had been increased to Rs.39,000 crore. Finance Secretary T V Somanathan said the government has set aside Rs.5,000 crore in the next fiscal year solely for Covid vaccination of 15-17-year-olds and a preventive dose for elderly adults, adding that extra money will be allocated as needed.

When asked why the budget for the fiscal year 2022-23 was cut, Somanathan explained that while the previous budget’s allocation was aimed at vaccinating the entire adult population, the next fiscal’s allocation should be viewed in the context of ‘precautionary doses’ and jabs for children aged 15-17 years.

“Last year, the provision was for two doses of vaccination for 100 per cent of adult population. The allocations are made based on the evolving health policy. Currently, the health policy is a booster for certain segments — frontline, above 60 years and vaccination for 15-17 years. That amount has been catered to Rs.5,000 crores has been earmarked,” he told PTI.

The Pradhan Mantri Ayushman Bharat Infrastructure Mission (PMABHIM), which aims to improve primary, secondary, and tertiary healthcare facilities across the country, was allocated 64,180 crore over six years in the FY21 budget; however, this year’s allocation for health infrastructure overall is only Rs.5,156 crore. The PMABHIM has only spent Rs.585 crore from its start in October 2021. (FY22 RE). Realizing the PMABHIM ambition appears tough without aggressive spending and implementation.

Furthermore, the WHO advises excluding capital expenditures from allocation calculations because these are one-time, long-term expenses. The National Health Mission, which encompasses both the urban and rural health missions, has enjoyed a 7% rise in funding. Given how the urban mission has yet to make an impact in smaller places, a higher budget would be justified.

The government reported in the last Parliament session that about Rs.20,000 crore had been spent so far on the immunisation effort, out of a total budget of Rs.35,000 crore. More than 167 crore vaccine doses have been provided in the coverage so far, covering over 95% of the adult population with at least one dose and 75% of the adult population with two doses. So far, the federal government has purchased vaccines in the country and distributed them to states for free in government hospitals.

The health infrastructure initiative has a total budget of 5,156 crore, which is astonishing given that the scheme is supposed to spend 64,180 crore over six years but has barely spent 900 crore since its debut in October last year. AYUSH receives a 14.5 percent boost, while Swasthya Suraksha Yojana, which focuses on tertiary care infrastructure growth, receives a 35.1 percent boost. The Department of Health Research has been given a budget of 3,200.65 crore, an increase of 3.9 percent.

The government’s low commitment of Rs.5,000 crore could signal that by April 2022, public money for vaccine procurement and delivery will no longer be required. The fact that Covishield and Covaxin were granted market licences means that individuals will have to buy it from the private sector.

It has sparked fears that the government may enable firms to freely sell their vaccinations in the private sector, particularly if booster doses for larger groups of people are allowed. Booster or cautionary doses are now only approved in India for healthcare personnel, frontline workers, and people over 60 with comorbidities.

However, according to a senior government official, the funding provided is sufficient for the projected population, and the health ministry may always request additional cash if an emergency arises. “If required, the budget can always be allotted in the middle of the financial year too,” he added. “For instance, in the future, if some other variant comes, then the government can launch a special package under those circumstances.”