Vaccine spend may exceed Rs 50,000 crore: Report

The Central government’s vaccine spending is expected to exceed Rs 50,000 crore, higher than the budget estimate of Rs 35,000 crore. It is, however, unlikely to strain the government’s finances, according to a report in the Times of India. The government has taken into account the option of immunising children under the age of 18, which is expected to begin later this year. The report quoted government sources as saying that the Centre may tap the special windows of multilateral organisations such as the Asian Development Bank to fund roughly $2 billion at low rates.

Officials claim that this will ensure that market borrowings are not impacted, allowing the private sector to raise capital.

Fiscal deficit in the first half of this year to be at Rs 5.3 lakh crore

Many experts believe the fiscal deficit will be lower than the predicted 6.8% of GDP, said the report, adding that the government, however, has committed to higher spending in various areas, which will necessitate additional funds.

The controller general of accounts revealed new figures on Friday that put the Centre’s fiscal deficit in the first half of the current fiscal year at Rs 5.3 lakh crore, or 35% of its full-year budget target, as healthy tax revenues helped keep government finances in much better shape.

This was likely the finest fiscal performance in the first half of the 2021-22 fiscal year in approximately 20 years, thanks to strong revenues and smart spending management.

Revenue collection was in a better shape, thanks to more vigorous economic activity after lifting of Covid curbs receipts from excise duty were up 79% compared to the same period last year, largely due to the increase in global crude oil prices and the higher local taxes on fuel, the report said. Tax revenues reached 59.6% of full year budget estimates.