National Project Implementation Plan - NVBDCP

Table 3: Estimated Incremental Costs and Benefits of Phased Transition to New Protocol, 2008 to 2012
(i) Estimated incremental costs of phased transition Mil. Rs. 37.4 37.1 296.8 146.9 42.8 561.0
(ii) Number of severe cases averted Cases 5,500 11000 16500 19250 13750 66,000
(iii) Number of deaths averted Deaths 1100 2200 3300 3850 2750 13,200
(iv) Economic benefits from averted severe cases Mil. Rs. 16.5 33.0 49.5 57.8 41.3 198.0
(Assuming that about Rs. 3,000 is spent on
treating a severe case of malaria)
(v) Economic benefits from averted deaths Mil. Rs. 396.0 792.0 1188.0 1386.0 990.0 4,752.0
(Assuming each averted death results in 15 years
of additional life, valued at Rs. 24,000 per year)
(vi) Total incremental economic benefits Mil. Rs. 412.5 825.0 1237.5 1443.8 1031.3 4,950.0
[ = (iv) + (v) ]
(vii) Net Incremental Economic Benefits Mil. Rs. 375.1 787.9 940.7 1296.9 988.4 4,389.0
[ = (vi) - (i) ]
14.2 Financial Analysis
Expenditure on NVBDCP has increased at the rate of 51% over 8-year (period
1997-98 to 2004-05), but in the last three years alone (2005-08) the
expenditure has gone up by 77%. Looking at the past years data on budget
allocations and utilization it is clear that both Domestic Budgetary Support
(DBS) and Externally Aided Component (EAC) are important funding sources
for the program.27 Cumulatively 51% of total budget allocations came from
DBS whereas EAC contributed 49% between 1997-98 and 2007-08. On the
utilization side, 61% of expenditure was done under DBS and only 39% was
under EAC. Looking at the gap between total budget allocations and actual
utilization of funds, it turns out that allocations have been higher than the
actual expenditure for all the years (refer the table below). The cumulative
shortfall in utilization has been around 20%. This shortfall is only 3.3% in case
of Domestic Budgetary Support (DBS) while as high as 36.8% for the
Externally Aided Component (EAC). The reason for such high shortfall in
utilization of EAC allocations has been due to the inability to complete the
planned procurement of commodities on account of certain procurementrelated
issues. As for DBS, in certain years, the expenditure has in fact been
higher than the allocations (refer the table 3 below), implying that MOH can
enhance resources on its own account even beyond the budgeted amounts if
the program so demands.
27 The Bank support has been the most important support under Externally Aided Component. In
the last 2-3 years, GFATM has also been funding on control of malaria in India.
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