Govt. had no other option, says Jayalalithaa

By Our Special Correspondent

CHENNAI, NOV. 28. Insisting that the across-the-board hike in transport and power tariffs effected and the economic reforms initiated by the Tamil Nadu Government were not ``anti-people'', the AIADMK general secretary, Ms. Jayalalithaa, today said these measures were ``inevitable'' in the grave financial situation.

Addressing a press conference here, Ms. Jayalalithaa said the Government had ``no way'' except making these tough decisions as the DMK regime had left the exchequer empty. When the AIADMK Government assumed office in May 2001, ``we discovered to our dismay that the State exchequer was completely empty.''

The Government did not effect the hikes ``whole- heartedly'', but it did not have any other option. Although in 1996 the AIADMK regime had left the exchequer with a Rs. 800- crore surplus and the State economy in a healthy condition, the DMK Government wiped the exchequer clean by 2001. Indeed, there was a huge deficit with the Public Works department not having paid contractors for works completed to the tune of Rs.700 crores.

The present situation arose on account of the losses accumulated over five years under the DMK government. It was the result of the ``inefficiency and maladministration'' of the DMK Government under Mr. M. Karunanidhi.

The tough measures were inevitable in the transport and power and Public Distribution System. These were necessary to restore Tamil Nadu to its prime position.

Denying that the reforms were adopted under pressure from multilateral funding agencies, Ms. Jayalalithaa said the decisions were made in the context of the financial situation of the State.

Asked whether some of these measures would be reversed in the event of the State returning to a healthy financial position, Ms. Jayalalithaa said she did not want to comment on such prospects as the priority at present was to pull the State out of its present difficulties.

To another question why the Government had not touched the free power supply scheme for farmers, Ms. Jayalalithaa said she did not want to comment on issues which were not part of the decisions taken by the Government. Asked specifically whether political considerations were behind the decision to leave the free power scheme untouched, she repeated she had no comment to make.

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Section  : Southern States
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