InvestorQ : Will the free vaccination drive promised by Mr. Modi increase the fiscal deficit?
diksha shah made post

Will the free vaccination drive promised by Mr. Modi increase the fiscal deficit?

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Dilmini Mercia answered.
1 month ago
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You are right that the free vaccination drive announced by Prime Minister Modi is likely to entail an additional spending of Rs.80,000 crore or $11 billion to arrest the spread of the virus and get back to growth rapidly. Now there is no confusion over states bearing the cost or customers paying. It is going to be free with the centre footing the bill.

The vaccine outlay is likely to be only Rs.10,000 crore but there will be an additional outlay of Rs.70,000 crore for food provisioning to the underprivileged segments. Modi recently promised free vaccines, reversing a policy that led to states competing for supplies. This could worsen the fiscal situation despite the Rs.100,000 crore impact of RBI dividends.

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