The present Government in Tamil Nadu has taken steps to alleviate the financial condition of state public sector undertakings, including the power utility, and stemmed the deteriorating fiscal condition in the State, according to the Finance Minister, Mr O. Paneerselvam.
Reacting to the media publishing reports of the Comptroller and Auditor General of India for 2010-11, tabled in the Assembly on Wednesday, the Minister emphasised the period of the report pertains to the previous regime.
Since coming to power last May, the present Government headed by the All India Anna Dravida Munnetra Kazhagam, has taken corrective steps.
The audit reports have pointed out that 23 public sector undertakings had incurred heavy losses. The Tamil Nadu Electricity Board had lost Rs 10,294.64 crore and that the subsidy payment by the Government for free supply of electricity for agriculture at Rs 250 per horse power is very low.
The present Government has increased the subsidy payment to Rs 1,750 a HP, which corrects the inadequate compensation.
Similarly this Government has taken a number of steps to reduce the losses in other PSUs especially the losses suffered by the state transport undertakings.
Debt burden
The Auditor General’s report has said the State’s debt burden requires urgent attention. In 2010-2011, the revenue deficit was Rs 2,728 crore and fiscal deficit Rs 16,646 crore. The State’s debt was more than Rs 1 lakh crore.
The present Government has taken steps to increase the Government’s income. In 2011-2012, the revenue deficit has been eliminated and a revenue surplus of Rs 536.54 crore has been reached.
Fiscal deficit
Fiscal deficit in 2011-2012 has been contained to Rs 16,597 crore which was less than Rs 16,646 crore in 2010-2011.
Similarly, despite the Centre authorising the State to borrow up to Rs 17,437 crore, the net borrowing has been kept at Rs 12,874 crore, he said in an official statement.