In welcoming the appointment of Dr Palanivel Thiagarajan (PT) as TN Finance Minister (IE June issue), we expressed the hope for a drastic change in fiscal management. We pointed to the practice in Tamil Nadu of entrusting political leaders well-versed in Tamil literature and with good articulation with the prestigious finance portfolio. As the political philosopher Thomas Munro said, these were chosen for their ability to manage the floor of the house and not so much for their knowledge or equipment in the portfolios allotted.
PT is different from these – with rich academic credentials further expanded with practical experience handling high finances at the Standard Chartered Bank and Lehman Brothers. For five years he had also served as a Member of the Legislative Assembly. He used the opportunity to study closely the intricacies of fiscal issues. He has raised several issues on the state’s financial position.
It should, therefore, be no surprise over his structured approach. Along with the Chief Minister he has been pointing to the serious financial problems of the state like mounting debts, huge budget deficits that result in more borrowings, lack of avenues for raising resources… He has proposed to present a white paper on the state of finances. Since the DMK government has returned to power after 10 years, it will have no problem in presenting the poor state of affairs in detail and with transparency.
PT has provided for a gap of four days before presenting the budget. The logical expectation is a slew of strong measures to restructure the fiscal. This can be in the form of an increase in fares of bus transportation, power tariff… Of course, there will also be an attempt to blame it on the Centre for the deficiencies in the GST system.
I also hope for the possibility of a move towards a Universal Basic Income consolidating many of the multifarious welfare doles as also monetisation of public assets and the sale of the state’s share in blue-chip companies like Titan Industries, TNPL…
As mentioned in our earlier issue, such events can also prepare the ground for restructuring the state’s economy on the basis of the recommendations of the committee of economic experts. I do expect these experts to suggest drastic changes which would call for fundamental corrections.
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