The State Treasury has a cash balance of ₹3,000 crore on April 25 to purchase COVID-19 vaccines directly from manufacturers and making it available free of cost to the citizens as announced in the budget, Finance Minister T.M. Thomas Isaac has said.
“Money is not a problem for purchasing the vaccine directly from the manufacturers. We are waiting for the outcome of the negotiations a committee led by the Chief Secretary and secretaries of Finance and Health is having with the manufacturers on various aspects. A decision will be taken after completing the formalities,” Dr. Isaac told The Hindu on Sunday.
A political decision in this regard is likely on Monday after an online all-party meeting convened by Chief Minister Pinarayi Vijayan. The government had made it clear that it will not wait for a final decision of the Centre regarding distribution of free vaccine in view of the counting of votes for the Assembly elections scheduled for May 2.
The State is of the view that the Centre can later reimburse the cost of the vaccine purchased. It is estimated that the State will need ₹1,300 crore for procuring the vaccine directly from the manufacturers. Although it was stated in the Budget presented by Dr. Isaac that COVID-19 vaccine would be distributed free, no Budget allocation was made. The Minister is of the view that additional expense can be made from the cash balance of ₹3,000 crore. This expense for purchasing the vaccine can be ratified by the Assembly by creating a new Head of Account and including it in Supplementary Demands.
Dr. Isaac hinted that austerity measures will have to be adopted as the additional expenses have to be borne soon after implementing the pay revision for the government employees and teachers and revised pension. A sum of ₹5,000 crore was needed for pay revision and arrears.
“The State Budget is only ₹1.60 lakh crore and it is a fact that the income will not increase during the pandemic period and expenses will shoot up during the current worst crisis. Some austerity measures will have to be adopted,” the Minister said.
Dr. Isaac also criticised the decision of the Serum Institute of India to price the vaccine at ₹600 a dose and said citizens should protest. “The Institute has no right to revise the prices,” he said, adding the State will purchase the vaccine whatever be the price.
