Okay, here's the Q. Can India afford a totally free tax-payer funded #Covid19 immunisation programme for 75% of its population? Should India find the budgetary resources for such a programme? There are those who say No. those who can sghould pay. I say yes, India can fund it
Lets do the maths. Say we want to fund it 100% out of taxation, i.e a publicly funded health scheme. Assume the total cost is 1,500 per person. 800 million adults to be immunised. all very rough numbers; change them if you like.
That's 1.2 Trilliion Rupees or 1.2 Lakh Crores.
That sounds a pretty big number, almost UNAFFORDABLE. But hang on a bit. is it really unaffordable? Consider the following numbers: all taken from official Govt of India sources: CGA is the Controller general of accounts http://cga.gov.in/MonthlyReport/Published/11/2020-2021.aspx
So This hears budget expects to collect 20.2 trillion revenue. So far till end November (i.e.8 months or 2/3rds into the year) the actual receipts were only 8.12 trn a HUGE shortfall, yes, but you know who's to blame for that?
Interest payments alone is 7 trillion.
True, India has a BIG deficit problem with total expenditure planned at 30.4 trillion ( a trillion is same as 1 lakh crore). But seen in the round a total outlay on a covid-19 immunisation of 1.2 trillion IS INDEED doable
Say the Govt raised the money by issuing CovidVaccine Bonds (much more productive than #ElectoralBonds) of 2 lakh crores at say 7.5% p.a interest. That would mean an annual interest payment of 150 Billion or 15,000 crores. That would still be only 2% of current interest payments.
The point is: however we choose to finance it - either borrow, or cut back other less essential expenditure, or raise new revenue through taxes - it is both eminently possible/feasible and a matter entirely of choice-a political choice. All politics is about competing priorities
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