Tamil Nadu Government Released White Paper On The Economy

Tamil Nadu government released a white paper on the economy. Every family in Tamil Nadu owes Rs 2.63 lakh, the state government released a white paper on the economy.

Tamil Nadu Finance Minister Palanivel Thyaga Rajan released a white paper on Monday, clearing the picture of the state’s deteriorating economy.

It said that now the old stance is not going to work as there is no scope left on the fiscal front. The situation is that today there is a public debt of Rs 2.63 lakh per family in the state.

The government said – the situation will change.

Thyaga Rajan told reporters, “Our party’s government will change the situation with political will and administrative acumen.

The release of the white paper does not mean that we are going back on our commitment.

The ruling DMK in the state used to criticize the AIADMK government for its mismanagement when it was in opposition. He had talked about bringing a white paper on the fiscal situation for transparency.

Loan of Rs 2,63,976 per family.

The DMK government, in its first such report since assuming power in May, said the dire financial situation was partly due to external factors.

However, the major reason is structural flaws at the governance level, which were not rectified in time.

Due to the worsening deficit situation, the state became dependent on debt and today the situation is that there is a public debt of Rs 2,63,976 per family.

Pandemic worsened the situation.

The report said, ‘The covid-19 epidemic worsened the situation. We have to radically change our approach if we are to break the vicious cycle of rising debt and interest costs.

It is also an opportunity to push for reforms. The white paper said that the financial condition of the state has been deteriorating for the last eight years and due to this, investment related to development has been affected.

Growing fiscal deficit.

Tamil Nadu had a revenue surplus situation during five of the seven years between 2006-13. The revenue deficit continues since 2013.

DMK remained in power till 2006-11, while AIADMK till 2011-21.

Tamil Nadu’s revenue deficit stood at Rs 61,320 crore in the financial year 2020-21, which is 3.16 percent of the state’s gross domestic product (GDP).

The fiscal deficit of the state stood at Rs 92,305 crore in 2020-21, which is 4.43 percent of the state GDP.