Tamil Nadu targets growth of 5% for FY14

Increases the Plan expenditure to Rs 42,185 cr

The Tamil Nadu government has increased the Plan expenditure target for 2013-2014 to Rs 37,128 crore and for 2014-2015, it would be further increased to a level of Rs 42,185 crore.

The increase in the allocation will give a fillip to the economy, said Tamil Nadu Governor K Rosaiah in his customary address to the Assembly today.

The state administration also said though the growth in 2012-2013 was only 4.14%, it expects growth to revive and comfortably exceed 5% during 2013-2014, he added.

India is going through a difficult period of economic slowdown. The Gross Domestic Product (GDP) growth forecasts are being downscaled continuously and India is facing a complex problem of rising inflation, falling growth and instability in exchange rates.

“This has particularly affected Tamil Nadu, which is a manufacturing and exporting state. Against this tide, this Government is determined to revive the economy and improve the general economic environment,” said the Governor.

“Though growth in 2012-13 was only 4.14%, we expect growth to revive and comfortably exceed 5% during 2013 2014. There is a revival in industrial and agricultural production which would result in a rebound in the service sector growth,” he added.

The dream of inclusive growth has become a reality in the State of Tamil Nadu, however the global economic downtrend and the resultant domestic slowdown, which was also fuelled by the faulty macro,economic policies of the Central Government, have affected growth in Tamil Nadu,

He added, this was due to the vision of the to adopt an inclusive growth model, placing the highest emphasis on equitable development and on greater participation of the common people in the socio-economic development process of the State.

The State administration conceived development schemes targeting specific sectors and regions have been launched. “Problems of poverty and unemployment are being comprehensively dealt with. Several infrastructure projects with the potential to trigger long term economic growth have been planned and executed,” said the Governor.

He noted, there have been challenges, which have been overcome with fortitude and resolute action. Tamil Nadu is a water starved State and subject to the vagaries of the Monsoons.

This Government, on its part, is trying hard to reverse this trend. “In spite of all such challenges, I am sure that our State will emerge victoriously from this difficult situation, with the current administration,” said the Governor.

The year 2012 2013 witnessed a severe drought, hitting agricultural production hard and impairing economic growth.

The State could able to overcome the calamity of widespread crop failure, due to the the relief package at a cost of Rs.1,614 crore, announced by the Chief Minister.

“This apart, the global economic downtrend and the resultant domestic slowdown, which was also fuelled by the faulty macro economic policies of the Central Government, have affected growth in Tamil Nadu”.