We'll have to find vaccine resources if Centre doesn't help: Amit Mitra

In an Q&A, the West Bengal finance minister says differential pricing is absurd and will result in a huge additional outgo for states

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 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 shall meet at least once in every quarter of the financial year.

The 42nd GST council meeting was held on October 5, 2020 and an extended session was held on October 12, 2020. No GST Council meeting has taken place since then. This is a gross violation.

The GST Council is possibly the only federal institution that had held up when many autonomous institutions of India are being undermined systematically. Now, that has also been breached. How can this be justified by the Modi government and its Finance Minister?

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 1,56,164 crore. 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. But it’s not just West Bengal, every state will have huge gaps and taken together it will add up to Rs 1,56,164 crore. The GST Council should have met to arrive at solutions.

What would the additional burden on the state be on account of procuring vaccines in phase-3?

No country in the world has 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 Bannerjee 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 an increase in price for states and pass this burden on to the state exchequer? Like demonetisation, there has been no consultation with states on this vital issue.

Till November, the West Bengal government had spent around Rs 4,000 crore on Covid management. What is the cost so far?

There are variable costs and there are 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. But we have not got anything from the Centre, barring Rs 227 crore from the health mission funds.
 

For Amphan damages, we had sent all details for a compensation of Rs 1,00,000 crore and so far, we have got Rs 2,000 crore.

Some states have indicated that they would be diverting funds from other departments for procuring vaccines. How does West Bengal plan to finance its vaccination drive?

We will have to find the resources if the Centre refuses to help. But we will not cut from any 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 them. The poverty line in West Bengal has come down because most of the schemes are people-centric direct digital transfers. It would be unethical to cut down on these schemes and programmes.

It is the central government which should provide the money. They can borrow indefinite quantums of money; they don’t have FRBM hanging on their head. The central government should step in, monetise their fiscal deficit and give to the states what they need for tackling the Covid pandemic.

We have not got anything for Covid. So how will states manage? This is like pushing the states to the brink.

How confident are you of forming the next government?

I am absolutely confident. Amit Shah’s predictions for 11 states have failed; he has never got more than 30 per cent of his predictions on seats right. So if he is saying, 200 seats, he means 60-70 seats. Even by my calculation, they will not get more than that.