Budgetary Impact of Accelerating COVID-19 Vaccination

30 Pages Posted: 21 Jun 2021

See all articles by Carlos Contreras

Carlos Contreras

Universidad Complutense de Madrid (UCM)

Julio Angulo


Date Written: June 10, 2021


This paper analyses the extent to which additional extraordinary public spending to accelerate vaccination might have been optimal in terms of minimising the public deficit. We use a budget model whose key variable is the present value of cumulative net government revenues over a period of time. The main finding of the paper is that there is an optimal level of expenditure that minimises the loss of net tax revenue. This level could be around 3.25 times the expenditure needed to vaccinate the entire population. The result seems quite robust to different assumptions about the contagion rate, the loss in the number of hours worked due to COVID-19, the rate assumed by the government in labour income replacement programmes, and the period of analysis considered.

Keywords: government budget, COVID-19, vaccination expenditures

JEL Classification: H2, H5, H6

Suggested Citation

Contreras, Carlos and Angulo, Julio, Budgetary Impact of Accelerating COVID-19 Vaccination (June 10, 2021). Available at SSRN: https://ssrn.com/abstract=3864267 or http://dx.doi.org/10.2139/ssrn.3864267

Carlos Contreras (Contact Author)

Universidad Complutense de Madrid (UCM) ( email )

Campus de Somosaguas
Madrid, Madrid 28223

Julio Angulo

Independent ( email )

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