The Finance Ministry on Monday clarified that the Rs 35,000 crore proven within the finances as demand for grants has truly been used by the Centre to procure Covid vaccines and such grant has a number of benefits over different types of funds offered within the finances.
“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 mentioned in a press release.
The clarification came visiting experiences that advised that your complete grant offered within the finances was meant for transfers to states with the Centre having no funds to go purchase vaccines by itself.
The Finance Ministry mentioned that the usage of this Demand for Grants has a number of administrative benefits. Firstly, as a result of expenditure on vaccines is one-off expenditure exterior the conventional Centrally Sponsored Schemes of the Health Ministry, separate funding ensures straightforward monitoring and administration of those funds.
Also, this grant is exempted from the quarterly expenditure management restrictions relevant to different calls for. This helps to be certain that there isn’t a hindrance within the vaccination programme.
The quantity offered below this head for vaccinations is definitely operated by the Ministry of Health.
Vaccines are handed on to the States as grants in variety and the precise administration of vaccines is being completed by States. Further, there may be sufficient administrative flexibility to change the character of the Scheme between grants in-kind and different types of grants.
Therefore, for guaranteeing satisfactory availability of funding for vaccination, the “budget classification does not really matter,” the ministry mentioned.
The use of the Demand titled `Transfers to States` by no means implies that expenditure can’t be incurred by the Centre, it added.
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