FM mentions that it is factually incorrect to state that there has been no expenditure on COVID 19 vaccination by the centre



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The Finance Ministry has stated it is incorrect to claim the Central Government has not spent any money on COVID-19 vaccinations. An amount of Rs. 35,000 crore was allocated under 'Transfers to States' for this purpose, with the Centre procuring and paying for vaccines through this fund. This classification offers administrative advantages, ensuring smooth vaccine rollout.

It is factually incorrect to state that there is no provision for expenditure on COVID-19 vaccination by the Central Government: Finance Ministry

Amount of Rs. 35,000 crore shown under Demand for Grants No. 40, titled ‘Transfers to States’ ; use of this Demand for Grants has several administrative advantages

The use of the Demand titled ‘Transfers to States’ in no way implies that expenditure cannot be incurred by the Centre

This is with reference to the media report in ‘The Print’ entitled “The reality of Modi Government’s vaccine funding: Rs. 35,000 crore for States, zero for Centre.”

Centre Did Spend on COVID-19 Vaccines, Says Finance Ministry

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 use of this Demand for Grants has several administrative advantages. Firstly, because expenditure on vaccine is one-off expenditure outside the normal Centrally Sponsored Schemes of the Health Ministry, separate funding ensures easy monitoring and management of these funds.  Also, this grant is exempted from the quarterly expenditure control restrictions applicable to other demands. This helps to ensure that there is no hindrance in the vaccination programme. The amount provided under this head for vaccinations is actually operated by the Ministry of Health. Vaccines are passed on to the States as grants in kind and the actual administration of vaccines is being done by States. Further, there is enough administrative flexibility to change the nature of the Scheme between grants in kind and other forms of grants. 

Therefore, as pointed out in the report itself, for ensuring adequate availability of funding for vaccination, the “budget classification does not really matter”. The use of the Demand titled ‘Transfers to States’ in no way implies that expenditure cannot be incurred by the Centre.

FAQ :

Yes, the Finance Ministry states it is factually incorrect to say there has been no expenditure on COVID-19 vaccination by the Central Government.

The amount of Rs. 35,000 crore was shown under Demand for Grants No. 40, titled 'Transfers to States'.

The Centre procured and paid for the vaccines through the 'Transfers to States' head of account.

This allocation offers administrative advantages, including easy monitoring and management of funds, and exemption from quarterly expenditure control restrictions, ensuring no hindrance to the vaccination programme.

Vaccines are passed on to the States as grants in kind, and the actual administration is carried out by the States.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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