Free vax, food grains to cost exchequer ₹ 1.45L cr

New Delhi The government will spend up to Rs 1.45 lakh crore additional money to provide free vaccines and foodgrains to people devastated by the deadly second wave of Covid infections, sources said on Tuesday.

Prime Minister Narendra Modi's announcement of providing free inoculation to all adults will entail total spending of anywhere between Rs 45,000 crore and Rs 50,000 crore. This is higher than Rs 35,000 crore that the government had budgeted.

Extending 5 kg of wheat or rice and 1 kg of pulses every month to nearly 80 crore beneficiaries till November will cost between Rs 1.1 lakh crore to Rs 1.3 lakh crore. Taken together, the additional spending could be up to Rs 1.45 lakh crore, the sources said. Reversing a policy where States competed for vaccine supplies for certain age categories, Modi on Monday announced that the central government will procure vaccines for all adults. All above 18 years of age will get free vaccines from June 21. Also, the free foodgrain scheme that was to end in June has been extended till November.

The sources indicated that the government may have got enough buffer from the larger-than-expected Rs 99,122 crore dividend from the Reserve Bank of India (RBI) and the windfall from record taxes on petrol and diesel. The two together may just be enough to fund the free vaccines and the food grain cost.

The sources, however, did not say how and from where the vaccines will be procured. India currently uses the AstraZeneca vaccine produced by the Serum Institute of India, and another developed at home by Bharat Biotech.