Centre to be blamed for failure to stimulate growth: TN Govt

The government is taking all efforts to create a more congenial environment for increasing economic growth

The Tamil Nadu government today blamed the Centre for its "failure" to stimulate growth, which it said had an adverse impact on the state's economy and investments for the second successive year.

"While the state government has been striving hard to ensure equitable growth, the failure of the Government of India to stimulate growth and improve the failing macro-economic environment continues to adversely impact the investments and economic growth consecutively for the second year," Finance Minister O Panneerselvam said while presenting the Budget for 2014-15 in the state assembly.

He said that the continued economic stagnation has caused a substantial shortfall in the state's projected tax revenues.

"Though there are signs of revival, with the state's economic growth expected to exceed five percent during 2013-14, massive efforts are needed to stimulate the economy to put it back on the path of accelerated growth," he said.

As a 'positive sign,' the power situation has improved significantly and "industrial growth is showing recovery,' he added.

The government was taking all efforts to create a more congenial environment for increasing economic growth, besides stepping up state investment in critical sectors.

"Further, with the proposed investment of Rs 42,185 crore under Plan schemes during 2014-15, Plan Expenditure will cross Rs 1.07 lakh crore as against the overall 12th Plan target of Rs 2.11 lakh crore," he said.

Central government has decided to channelise funds for Central Plan schemes, hitherto routed through Special Purpose Vehicles outside the Consolidated Fund of the state, through the state budget in future.

"This will ensure better resource management and accountability," he added.