On Monday, Tamil Nadu Finance Minister Palanivel Thiaga Rajan highlighted the “unsustainable” fiscal position ahead of the budget release.
A 120-page water paper report the finance minister released said that since 2013-14, Tamil Nadu’s revenue deficit has become “truly alarming”.
Holding the All India Anna Dravida Munnetra Kazhagam (AIADMK) government for mishandling the economy, Thiagarajan said the Covid pandemic had catalyzed deterioration in revenue and fiscal deficits.
The minister released the White paper on the State’s finances to empower the citizens and the elected members to the Assembly, to understand the entire situation of the financial position.
He further hinted at some reforms which can be introduced in the budget this Friday. “These problems can be corrected. This is an opportunity to effect once in a generation reform”, he said.
Clearing the state’s stance on the reforms, Thiagarajan said that the White Paper should not be seen as an attempt to dumping the party’s commitments during the campaign.
“The budget I will be presenting this Friday will be practically for six months,” the finance minister said. “Hence one cannot say how many changes could be taught in this exercise.
But going forward, the bitter medicine will be rightly delivered for the vested interests who exploited the state’s revenues for their personal benefits,” reported by The Times of India.
Holding the previous AIADMK government responsible for inadequate governance, he also promised to set the mismanagement right in the next five years that the DMK has.
“The situation turned around in 2011-12 and 2012-13 when revenue surpluses were again seen.
However, this improvement was short-lived, and since 2013-14, the state has continuously been in revenue deficit. This worsening situation has become truly alarming,” he said.
In an interview given to ThePrint, Thiagarajan said that IAS does not run our country; officials elected by the people run the democracy.
As he is called, PTR impressed upon the accountability that bad leadership should take if it is credited after good outcomes.
It has only been a little over a month since the State government formed an Economic Advisory Council with prominent economists.
“We will be very hands-on and get back to the mechanics of administration to govern such a large state efficiently,” he said.
He further focussed on the increasing debt totaled Rs 5,70,189 cr, which amounts to Rs 70,000 on every citizen in 2022.
He said borrowing is the prime reason for such an outstanding debt that the state’s tax revenue slipped to 5.46 percent in 2020-21 from 13.35 percent in 2008-09.