COVID-19: Myth vs. Facts 04-01-2022

Media report claiming that Centre has only released 26.14% of funds under ECRP-II is Misinformed and Misleading

Funds were released by 24th August 2021 and not in November 2021, as claimed in the news item

A news channel has recently made a claim that the Union Government has only disbursed 26.14% of the ECRP-II funds to the states. The news channel further claims that funds were disbursed by the Centre by November 2021 and states have utilized 60% of the approved funds. The news report is misinformed and claims are false, misleading and based on misrepresented facts.

The Cabinet approved the “India Covid-19 Emergency Response and Health Systems Preparedness Package – Phase-II” (ECRP-Phase-II) on 8^th July 2021 for an amount of Rs. 23,123 crores (Central Share – Rs. 15,000 Crore and State Share – Rs.8,123 Crore) to be implemented from 1^st July 2021 to 31^st March 2022. The scheme is a Centrally Sponsored Scheme (CSS) with some Central Sector (CS) components.

The Scheme is aimed to prevent, detect and respond to the continuing threat posed by COVID-19 and strengthen national health systems for emergency response and preparedness across the country. Under the scheme, Rs 20,308.70 crores are to be spent by states out of which Rs 12,185.70 crore is to be provided by the central government and Rs 8,123 crore is to be provided by state governments.

Immediately after approval of the scheme, the Union Government took proactive measures and released 15% of the central share to States/UTs on 22/07/2021 to enable them to quickly undertake the preparatory activities for implementation of ECRP-II. The second instalment of funds was released soon after as advance to the States in the month of August 2021. A total amount of Rs. 6075.85 Crore (50% of central share) has already been released to States/UTs through National Health Mission (NHM) by 24^th August 2021.  State wise central share release and expenditure till date can be seen at Annexure I. So far, expenditure of Rs. 1,679.05 Crore has been incurred by the 36 States/UTs under ECRP-II.

There are several factual errors in the report of the news channel.

1. The Central Government has released 50% of the funds earmarked for States/UTs, and not 26.14% as claimed in the news report.
2. All funds were released by 24^th August 2021 and not in November 2021, as claimed in the news item.
3. Out of the Rs. 6075.85 crore made available by the Union Government, Rs. 1679.05, crore, (i.e. 27.13%), have been spent by States as 31/12/21, and not 60% as claimed in the news report.

The remaining funds will be released to states based on the progress and utilization of at least 50% of the funds already released. So far, five states have reported expenditure of more than 50%. Central Government is actively pursuing with states with speedy implementation of the ECRP-II package. Two meetings have been conducted by Union Health Minister with State Health Minister, and Union Health Secretary has conducted at least three meetings with State Health Secretaries.  Both the physical progress and expenditure are being monitored at the Union health Ministry on a daily basis.

Annexure I

ECRP-II Financial Progress (Source: NHM-PMS Portal) (As on 3^rd January 2022)