The ‘Tamil Nadu Vision Plan 2023’ document was released in 2012 by former Chief Minister Jayalalithaa, with a target set to achieve Rs.15 lakh crore total investment in infrastructure sectors by 2023, as well as increasing per capita income and providing employment to 2 crore people. As the DMK government prepares to present its third financial statement, it is necessary to discuss the progress made in Tamil Nadu and future plans.
Chief Minister M.K.Stalin has criticized the central financial statement released on February 1, which he believes is a huge disappointment to Tamil Nadu. While Tamil Nadu is one of the five states that received significant GST compensation during the period 2017-2022, the Tamil Nadu government’s criticism is that it is less than 10% of the tax revenue.
Tamil Nadu is also the state with the largest number of factories and workers in factories in India. Therefore, important announcements for the development of the industry are expected, with benefits of electricity consumption in manufacturing, agriculture, and service sectors. Small entrepreneurs are awaiting government help, and the progress and future plans related to the policy to start up the industry, low interest loan schemes, etc., should be published.
In the IT sector, the ‘Umagine Chennai 2023’ conference is expected to promote development in Chennai. Announcements relevant to the education sector and digitization of the agriculture and health sectors may also be prominent in this financial statement.
There are expectations for improvements to basic infrastructure in hospitals and education, focusing on the development of infrastructure including school buildings and toilet facilities. An announcement will also be made regarding a Rs.1,000 per month entitlement to heads of households, as promised in the election manifesto.
It is commendable that a separate financial statement for the agriculture sector is being published for the third year running. However, work is necessary, including increasing and expanding procurement stations, to address the plight of agricultural produce, including paddy, which gets soaked in the rain and goes to waste.
Overall, financial reporting should not only be a formal practice of presenting annual plans, but also a visionary plan. M.K.Stalin’s government needs to have concrete plans to improve the financial situation by reducing expenditure, identifying new sources of finance, and increasing them.
The document ‘Tamil Nadu Vision Plan 2023’ was released in 2012 by then Chief Minister Jayalalithaa. Accordingly, it has been decided to achieve a target of Rs.15 lakh crore total investment in infrastructure sectors by 2023.
The targets were also set to increase per capita income and provide employment to 2 crore people. We have reached the year 2023 through successive developments, setbacks and regime change.
As the DMK government, which is running on the advice of top economists including former Reserve Bank Governor Raghuram Rajan, is about to present its third financial statement today, it is necessary to discuss the development achieved by Tamil Nadu and the plans to be made.
Tax Revenue: Chief Minister M.K.Stalin had criticized the central financial statement released on February 1 as a huge disappointment to the people of Tamil Nadu. He also criticized that despite the announcements of new projects, funds have not been allocated for them.
A study conducted by the RBI indicates that Tamil Nadu is one of the five states that received significant GST compensation during the period 2017-2022. According to the report, the GST compensation given to Tamil Nadu was Rs.40,000 crore. However, the Tamil Nadu government’s criticism is that it is less than 10% of the tax revenue.
In the last fiscal report, the Tamil Nadu government’s revenue deficit was expected to come down to 3.80% from 4.69%. Analyzing these aspects, it is expected that the schemes to increase the tax revenue will be presented in this financial statement.
Industry Expectations: Tamil Nadu is not only the state with the largest number of factories in the country, but also the state with the largest number of workers in factories. In this case, important announcements for the development of the industry are expected.
Power Minister Senthil Balaji has proudly stated that power consumption has reached its peak due to uninterrupted power supply. In this financial statement, we can expect the benefits of electricity consumption in manufacturing, agriculture, and service sectors.
There is criticism among the small entrepreneurs that the government has no initiative in rehabilitating the weak entrepreneurs. Many companies still reeling from pandemic-era setbacks are waiting for government help.
In the last financial statement, the policy was formulated to start up the industry. Its progress and future plans should be published. Low interest loan schemes should be increased.
IT Department: It was the Karunanidhi-led government that formulated the Information Technology (IT) policy as a model in India. Amidst the challenges facing the IT sector today, M.K.Stalin’s government seems to have an intention to help its development.
An example is the ‘Umagine Chennai 2023’ conference for IT industry development in Chennai on March 23-25. As the use of information technology is high in the education sector, announcements relevant to both sectors can be prominent in this financial statement. Also, there may be important announcements related to digitization of agriculture and health sectors.
Health, Education: As far as the health sector is concerned, there is an expectation that priority should be given to improving basic infrastructure in hospitals, filling up vacant posts, rather than starting new medical college-hospitals.
In the field of education, programs ranging from ‘home search education’ to ‘breakfast’ have been well received. On the other hand, there is criticism among the teachers that more emphasis is being given to new projects than focusing on the development of infrastructure including school buildings and toilet facilities. Also, demands such as permanency of part-time teaching and re-implementation of the old pension scheme are being put forward.
The Delhi Aam Aadmi Party government is expected to give importance to the infrastructure development and beautification of the capital city in the financial report to be submitted tomorrow. The effects of unplanned urban development in Chennai, the capital city of Tamil Nadu, are evident.
Not only during calamities including storms, but also during monsoons, the people of Chennai face problems like flooding and water logging on roads. As announced in the last financial statement, a separate fund for climate change has been set up and the fund plans to raise Rs 1,000 crore. The progress of this scheme should be listed as a model in the country.
General Expectations: Schemes for urban employment, part-time employment etc. should be made. Low revenue from minerals to the government and high revenue to the private sector continues to be a problem.
We need plans to address this. As promised in the election manifesto, an announcement is about to be made about a scheme to provide an entitlement of Rs.1,000 per month to heads of households. Also, the government should also provide a proper explanation in the context of the ongoing debate as to whether the financial burden on the government is increasing due to free schemes.
It is commendable that the separate financial statement for the agriculture sector is being published for the third year running. However, the plight of agricultural produce, including paddy, which gets soaked in the rain and goes to waste continues. Work including increase and expansion of procurement stations should be carried out.
There are plans to improve water resources and initiate waterborne freight and passenger transport. Schemes are necessary to improve and maintain state highways.
It is the duty of a good government to allocate funds for grants, scholarships, etc. even when finances are tight. The government needs concrete plans to improve the financial situation by reducing expenditure, identifying new sources of finance and increasing them.
Financial reporting should not only be a formal practice of presenting annual plans but also a visionary plan. M. Karunanidhi’s style was to divide revenue equally for industrialization and social welfare projects.
Even today he is praised for ensuring that the economy of Tamil Nadu was not affected by it. Let’s see what plans M.K.Stalin’s government, which never failed to present his father’s achievements with pride, is going to carry out in this financial report!
– Contact: chandramohan.v@hindutamil.co.in