The Tamil Nadu government on Monday presented a Rs 28,000-crore annual Plan 2012-13 with the Planning Commission, an increase of 19 per cent over the outlay of Rs 23,535 crore in 2011-12. The Plan outlay is proposed in the overall context of the 12th Five-Year Plan outlay of Rs 2 lakh crore proposed for the state, which is more than double the 11th Five-Year Plan outlay of Rs 85,344 crore.
In her speech during the finalisation of the annual Plan for Tamil Nadu for 2012-2013 with the deputy chairman, Union Planning Commission on Monday at New Delhi, Tamil Nadu chief minister J Jayalalithaa said, “While we are remedying the state’s fiscal situation, substantial financial support is required from the Centre for the raised investment needs of the state’s 12th Five-Year Plan. Unfortunately, the 11th Plan has shown disappointing trends."
“The central government should liberally support the projects taken up by the state government through viability gap funding. However, considering the scrutiny that these projects will face by the Board, there may not be any need for a parallel evaluation by the central government for viability gap funding,” the chief minister said.
The state government has launched two mission-mode schemes – the Chennai Mega City Programme for Chennai city and the Integrated Urban Development Mission for other cities and towns, with a combined annual outlay of 1,250 crore. The works taken up in the first year are fast-nearing completion.
In addition to expediting the works of the Chennai metro rail project, a global tender has been floated and bids have been invited for Phase-I of the Chennai mono rail project at a cost of Rs 8,500 crore.
The state government is also strengthening the transmission network at a cost of Rs 3,573 crore with assistance from the Japan International Co-operation Agency.
“Proposals for the financial assistance for strengthening the evacuation of wind energy and separate feeders for agriculture have also been proposed to the Union government and I urge the support of the Union Planning Commission in arranging suitable funding,” she said.
The Tamil Nadu government has also introduced a solar-powered green house scheme, under which 60,000 green houses with solar lights will be constructed every year for poor families in rural areas at an annual cost of Rs 1,080 crore.
The chief minister requested the Planning Commission to review the guidelines of the National Solar Mission to match the state allocation for potential projects and to promote equitable treatment of states.
“The ambitious goals of the 12th Five-Year Plan can be achieved only when good performers are adequately rewarded through more funds and flexibility in the implementation of various schemes and programmes,” she said.
The state had a huge revenue deficit of Rs 3,531 crore in 2009-2010 and Rs 2,729 crore in 2010-2011. The fiscal deficit as a percentage of the gross state domestic product (GSDP) breached 3.2 per cent in 2010-2011.
Despite the largesse, the average annual growth rate during the first four years of the 11th Plan was only 8.05 per cent, well below the national average.
“Our new and prudent fiscal management strategies have reversed this dismal outlook. The state has returned to a situation of revenue surplus in 2011-2012 and the fiscal deficit as a percentage of GSDP has been contained at 2.85 per cent. The latest estimates of the Central Statistical Organisation (CSO) place the economic growth rate of Tamil Nadu for 2011-2012 at 9.39 per cent, much above the national average of 6.5 per cent,” the chief minister said.
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