FREE VACCINES WILL PINCH POOR STATES

India’s most socioeconomically backward states may have to spend as much as 30% of their health budgets to procure Covid-19 vaccines for their population, an analysis of population and state budget data suggest.

These eight states – Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttarakhand and Uttar Pradesh – are among the 20 that have announced free Covid-19 vaccination those aged 18 to 44 years. They would have to shell out as much as 23% if they were to procure only Serum Institute of India's (SII) Covishield, and up to 30% for Bharat Biotech's Covaxin, analysis shows. Covishield and Covaxin are the two Covid-19 vaccines already being administered, among three approved for use in India. While the Centre had clarified that it would procure vaccines at ~ 150 per dose from vaccine manufacturers, Covishield is being supplied to state governments at ~300 per dose and Covaxin at ~400 per dose.

Until April 30, India had been vaccinating only registered health care workers, frontline workers and those above the age of 45. Then the central government expanded vaccine eligibility to all adults. The Centre would continue to procure 50% of manufacturers' vaccine stocks for vaccinating the former groups, and manufacturers could sell the remaining 50% of their vaccine stock to state governments and to private hospitals, according to the new policy.

The additional financial burden comes as all eight states, except Odisha, have reported a revenue deficit in their revised Budget Estimates for 2020-21, according to a PRS Legislative Research brief. States are facing shrinking revenues and increased expenditure on social safety nets due to the COVID-19 pandemic.