We'll have to find resources for vaccination if Centre doesn't help: Mitra

'Differential pricing is absurd and will result in a huge additional outgo for the states,' Amit Mitra tells Ishita Ayan Dutt

Most states ruled by non-BJP parties have come down heavily on the vaccine policy of the central government for the third phase. In an interview, West Bengal finance minister Amit Mitra tells Ishita Ayan Dutt that differential pricing is absurd and will result in a huge additional outgo for the states. Edited excerpts:
 
Why are states like West Bengal demanding an urgent meeting of the Goods and Services Tax (GST) Council?
 
Not holding GST Council meetings is against constitutional provisions. Paragraph 6 of the Procedure and Conduct of Business Regulations of the Goods and Services Tax Council, as approved in its first meeting of September 2016, states that the council will meet at least once in every quarter of the fiscal year. The 42nd GST Council meeting was held on October 5, 2020, and an extended session was held on October 12. No GST Council meeting has taken place since then. This is a gross violation. The GST Council is possibly the only federal institution that has held up when many autonomous institutions of India are being undermined systematically. Now, that has also been breached.

 

What is the most important issue that needs to be taken up by the GST Council?
 
In 2021-22, the expected shortfall in compensation for states will be Rs 1.56 trillion. This is after taking into consideration the cess that will be collected and passed on to the states. Shouldn’t there be a discussion on this huge quantum of shortfall that is expected? For West Bengal, the revenue gap will be a staggering Rs 13,575 crore. The GST Council should have met to arrive at solutions.
 
What would be the additional burden on the state on account of procuring vaccines in phase 3?

 
There is no country in the world where there is differential pricing in vaccines, whether it’s the UK or the US, or 27 countries in the European Union. But here, there will be three rates — for the Centre, state and the private sector. This is unheard of.
 
West Bengal will be giving vaccines free of cost. Is it for vaccination by government hospitals?
 
Mamata Banerjee has committed free universal vaccines for all above the age of 18, from May 5. But when we first announced it, there was a fixed rate of Rs 150 per dose. Now, it is being priced at Rs 400 per dose, which is a huge additional outgo for the states.

 
Will differential pricing become a new front in the Centre-versus-state battle?
 
Differential pricing is absurd. How can you allow the increase in price for states and thrust this burden on the state exchequer? Like demonetisation, there has been no consultation with states.
 
Till November, West Bengal had spent around Rs 4,000 crore on Covid management. What is the cost so far?
 
There are variable and capex costs. Many hospitals have been revamped; we have set up safe houses, used hotels as quarantine facilities. We have produced and distributed crores of masks, tonnes of hand sanitisers and lakhs of PPEs. All of this has cost money and it’s a huge amount — more than Rs 6,000 crore has been spent already.

 
There are states that have indicated that they would be diverting funds from other departments for procuring vaccines. How does West Bengal plan to finance this vaccination drive?
 
We will have to find the resources if the Centre refuses to help. But we will not cut from people-centric and social infrastructure schemes and projects. We have 94 state schemes, of which 31 are very large. We cannot cut down the budget from a single one of these.
 
The poverty line in West Bengal has come down because most of the schemes are people-centric direct digital transfers. The central government should step in, monetise its fiscal deficit and give to the states what they need for tackling the Covid pandemic.