The Hindu Business Line : TN financial position comfortable: Karunanidhi

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Chennai Jan 28 The Tamil Nadu Chief Minister, Mr M. Karunanidhi, has dismissed the Opposition's charge that the State was headed towards bankruptcy due to the various welfare schemes and stated that the State's finances were comfortable.

Total revenues were 20 per cent higher during the first nine months of the current fiscal, he said while replying to the debate on the motion of thanks to the Governor's address.

During the period, total revenue stood at Rs 24,548 crore. Revised estimates for the year pegged revenue receipts at Rs 38,732 crore, he said. The State Government's expenditure was Rs 23,594 crore.

Provision for all the welfare measures announced by the State Government have been made in the revised Budget estimates.

Despite the huge expenditure following the welfare measures, the State was well in line to meet the targets set out under the Fiscal Responsibility Act.

The welfare measures include Rs 1,950 crore for food subsidy, Rs 759 crore for free colour television distribution, Rs 60 crore for free domestic cooking gas connection and gas stoves, Rs 1,435 crore this year for waiver of co-operative loans for farmers, Rs 60 crore for marriage assistance and Rs 250 crore for Pongal bonus to Government employees.

On the needs for basic infrastructure, Mr Karunanidhi said that the Government has earmarked an additional Rs 230.17 crore for upgrading 280 roads.

With the additional allocation, 918 km of roads - 433 km of State highways and 485 km of important roads in the State - would be upgraded.

This would be in addition to Rs 722.40 crore allocated for improving 1,078 km of State highways, 1,390 km of district roads and 1,354 km of other district roads.

The State Government will sign an agreement with the World Bank for Rs 2,547-crore ($566-million) funding for modernisation of irrigation infrastructure. The World Bank had approved the project on January 23, he said.