Former finance minister O Panneerselvam on Friday launched a 39-page doc to counter present Finance Minister Palanivel Thiaga Rajan’s white paper on the state’s economic system, arguing that the precedence of the AIADMK authorities was individuals’s welfare.
In his white paper, launched to the general public on Monday, Thiaga Rajan had alleged monetary mismanagement by two successive AIADMK governments. In Monday’s doc, Panneerselvam has argued that the white paper skips key details – reminiscent of the choice of the earlier governments to not improve electrical energy fees, bus fares and property tax.
Panneerselvam cited these choices to stipulate that it was the “finest instance” for the way late J Jayalalithaa’s authorities prioritised individuals’s welfare despite challenges that emerged from an financial slowdown and decrease revenues.
The previous CM additionally argued that the state’s fiscal deficit was beneath 3% between the 2011-12 and 2018-19 durations, apart from the 2016-17 monetary yr. He added that the fiscal deficit stood at 3.26% in 2019-20 regardless of a drastic discount within the tax share from the Centre.
Whereas Panneerselvam cited causes such because the introduction of the GST and recession for inadequate progress of state’s tax income after 2016-17, he additionally blamed the suggestions of the 14th Finance Fee for worsening the state’s monetary scenario. He stated there was a dip of 1 % within the state’s business taxes vis-àvis GSDP and a further Rs 4,246 crore lower within the state’s share of Central revenues from 2019-20. He added that there was additionally a shortfall of practically Rs 40,000 crore within the projected and precise income for the yr 2020-21 FY as a result of Covid-19 pandemic.
Reminding that the AIADMK authorities additionally had determined to take over state-run energy company TANGEDCO’s debt burden – to the tune of Rs 22,500 crore – Panneerslevam stated delivering items to the individuals by environment friendly administration was the method of his occasion’s governments.