The Tamil Nadu government said the State’s fiscal situation is precarious with persistent high revenue and fiscal deficits and a large overhang of debt.
The fiscal health of the State is a cause for concern, and this Government will focus on improving the fiscal position and bringing down the overall debt burden. As a first step, a white paper detailing the true state of Tamil Nadu’s finances will be released in July, said the Governor of Tamil Nadu Banwarilal Purohit addressing the first session of the 16h Tamil Nadu Assembly on Monday.
The State government will make all out efforts to reverse the slowdown and usher in a period of rapid economic growth taking full advantage of the available limited window of the demographic dividend. It hopes to chart out a rapid and inclusive economic growth path with the guidance of an economic advisory council, comprising development and macro economists.
Even as the State’s fiscal health is in a bad shape, a total amount of ₹10,068 crore has been provided as livelihood assistance to the people, as Tamil Nadu is one of the worst-affected among the States by the second wave of Covid-19.
To provide succour to the people suffering from loss of income, the State government disbursed ₹4,000 as relief assistance in two instalments, totalling ₹8,393 crore to all 2.1 crore rice ration card holders in the State in May and June, said Purohit.
Further, grocery kits worth ₹466 each, containing 14 essential commodities have also been provided to all rice ration card holders at a total cost of ₹977.11 crore. Additional 5 kgs of rice for each person in the family is being provided to all rice card holders in the State for the months of May and June at an additional cost of ₹687.84 crore to the State government, he said.
He also said the State government will take all necessary measures to counter the possible third wave. All the ongoing construction projects in the health sector, including that of the 11 new medical colleges are being expedited for early completion. A new 500 bedded multi-specialty hospital will be constructed in the King Institute campus, Chennai at a total cost of ₹250 crore. Oxygen storage and production capacities are being further augmented in many Government Hospitals across the State.
Among other announcements, Purohit said the government will take all steps to achieve the target of 125 lakh tonnes of food grain production during 2021-22. A Master Plan for fully realising Tamil Nadu's tourism potential will be announced during this year. Heritage tourism will be given a boost by restoring and renovating old forts and palaces while retaining their originality.