India's states under pressure to cut budgets, sell assets for vaccination

States will have to foot about $5 billion in vaccination costs after the centre suddenly made them responsible for inoculating most adults.

The world’s worst coronavirus outbreak is set to stretch the already strained budgets of Indian states, making it more costly to borrow just when they need the money to cushion their economies.

India’s 28 states will have to foot about $5 billion or more in vaccination costs after Prime Minister Narendra Modi’s federal government suddenly made them responsible for inoculating most adults from May 1. Since they hadn’t budgeted for the jabs or steps to tackle a second wave, their options to meet the additional expense are limited to cutting capital expenditures, selling public assets and boosting borrowing.

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