FinMin: Rs 35K cr budgeted demand for grant used by Centre to pay for vax
By IANS |
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Mon, May 10 2021 16:03 IST |
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FinMin: Rs 35K cr budgeted demand for grant used by Centre to pay for vax. Image Source: IANS
New Delhi, May 10 : Finance Ministry on Monday clarified that the Rs 35,000 crore shown in the budget as demand for grants has actually been used by the Centre to procure Covid vaccines and such grant has several advantages over other forms of funds provided in the budget. It is factually incorrect to state that there is no provision for expenditure on COVID-19 vaccination by the Central Government. The amount of Rs 35,000 crore has been shown under the Demand for Grants No. 40, titled Transfers to States . Vaccines have actually been, and are being, procured by and paid for by the Centre through this head of account, the ministry said in a statement.
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Highlights
The clarification came over reports that suggested that the entire grant provided in the budget was meant for transfers to states with the Centre having no funds to go buy vaccines on its own.
Also, this grant is exempted from the quarterly expenditure control restrictions applicable to other demands. 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.
The Finance Ministry on Monday clarified that the Rs 35,000 crore shown in the budget as demand for grants has actually been used by the Centre to procure Covid vaccines and such grant has several advantages over other forms of funds provided in the budget.
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.
Budget heading for vaccination expenditure does not inhibit Centre from using funds: FinMin
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 funds, it said.
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Beneficiaries wait in a queue to recieve COVID-19 vaccine dose at a health centre in Makanpur, Monday. (Photo | PTI) By PTI
NEW DELHI: 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.
Representative image
NEW DELHI: 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.