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Making #vaccine a public good that& #39;s provided free of cost to all citizens would give a very high return on investment for the government (both tangible and intangible), and also kill two birds with one stone.
Here is the logic and suggested mechanism:
1) Central Government should pick up the entire cost. $5 billion has been budgeted already and if this is increased to $15 billion the cost of vaccinating the nation can be met. The additional $10 billion is less than 0.5% of GDP
2) From where would this money come? There are three ways to finance any deficit, namely, a) borrow from the public b) levy Covid tax and c) either borrow from RBI or just get RBI to monetize this by printing new currency.
3) The first two have a common problem that private consumption would further drop. Borrowing means eventually the loans have to be returned. And a Covid tax won& #39;t be popular. The problem with the third alternative is that it could fuel inflation.
4) But when the economy is contracting big time (nearly 7.5% in the year ending March 2021 over the previous fiscal), additional money supply may actually help. Hence two birds with one stone. Free vaccination and boost a flagging economy
5) Benefits are many: a) enthusiastic production of vaccine by the manufacturers, b) enthusiastic participation by state governments and even citizens, c) economy will bounce back quickly after vaccination, d) tax revenues will go up when the economy bounces back
Besides ease of implementation.
I strongly believe that this simple decision is the need of the hour.
I strongly believe that this simple decision is the need of the hour.
