“KRW 10 bln COVID-19 vaccine budget plan unclear and vague"

National Assembly Budget Office analyzes the 3rd contingency budget plan

The voice of criticism is raised against weak and vague ‘budget plan on COVID-19 treatment and vaccine manufacturing facility establishment support (R&D)’ worth 10 billion won the Korean government included as a part of the third contingency budget plan.

 

They point out a detailed business plan has to be set down first as the budget can be used differently depending on the development of the treatment vaccine.

 

On June 29, the National Assembly Budget Office analyzed and made such comment on the third contingency budget plan of 2020.

 

The treatment and vaccine manufacturing facility establishment support program mainly aims to financially boost the set up of the pharmaceutical manufacturing facility to respond against the COVID-19 pandemic.

 

The program was not included in the original 2020 budget plan, and first and second contingency budget plans of 2020.

 

The National Assembly Budget Office pinpointed the Ministry of Health and Welfare’s (MOHW) budget plan missing a specified business plan although the ministry plans to preemptively support setting up the manufacturing facility for the Korean-developed COVID-19 treatment and vaccine.

 

The National Assembly officials also said the budget could be repurposed depending on the status of treatment and vaccine development.

 

The 10 billion won budget plan appropriated 4.5 billion won and 5.5 billion won on constructing vaccine and treatment manufacturing facilities, respectively.

 

The Budget Office claims the contingency budget plan lacks a clear basis of calculation for the budget appropriation.

 

In detail, MOHW calculated 4.5 billion won would be needed for manufacturing 8.2 million doses of vaccine short from total 62.2 million doses of the two-dose vaccine required for immunizing 60 percent of the overall population (herd immunization threshold).

 

The budget office stated the calculation only considered the required dose for herd immunity, and overlooked the feasibility of execution.

 

The estimated treatment volume was also not properly projected, but apparently the ministry is to prepare it by the end of June.

 

The Budget Office also commented the basis of calculation is weak as the specifics, such as the list of equipment to be funded or the number of pharmaceutical companies to be funded, were not decided.

 

MOHW plans to allocate 2 billion won in constructing manufacturing facility for complete vaccine and 4.8 billion won on constructing treatment manufacturing facility.

 

But the Budget Office sees these figures are inexact and the ministry has not made the decision on the subject pharmaceutical companies, yet.

 

The contingency budget was reprimanded by the Budget Office as it could be used in other purposes besides the initial purpose, based on the development status of the COVID-19 treatment and vaccine.

 

And the Budget Office was disapproving of MOHW suggesting the budget possibly reallocated to manufacture active pharmaceutical ingredient for symptomatic treatment in patients with COVID-19.

 

Apparently, it is not clear if the ministry would withdraw the support plan depending on the high or low possibility of successfully finding COVID-19 treatment or vaccine within this year.

 

The National Assembly Budget Office official stressed, “The ministry’s budget plan lacks a detailed business plan with the list of beneficiary, list of supported equipment, and subject designation standard,” and “The budget execution feasibility would be impacted significantly based on the development progress of the COVID-19 treatment and vaccine.

 

The ministry should thoroughly draw out a business plan to achieve the objective of the program”