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TN plans to raise funds for development schemes

Our Bureau

CHENNAI, May 20

THE Tamil Nadu Government is looking at avenues to raise additional resources for developmental projects and to improve the rural economy.

In an informal chat with presspersons here on Sunday, the Finance Minister, Mr C. Ponnaiyan, admitted that Tamil Nadu was a highly-taxed State.

He said the State's revenue deficit, though not alarming, nevertheless needed to be looked into. The previous Government had left the exchequer practically empty. The additional resources were required to reduce the deficit and to implement developmental schemes.

He said that the State would take up with the Centre for a fair and just share of Central funds. The Finance Commission had classified Tamil Nadu as a developed State, because of which its share of Central funds was not commensurate with its contribution . He found fault with this calssification.

He said only 15 per cent of the population was dependent on the industrial sector, and this section's income was divided among the entire State to get at the per capita income. However, the income level in the rural areas, especially those dependent on d ryland farming, was much lower, resulting in an anomalous situation. "We are going to fight with the Centre (for our share). I do not know to what extent they will yield," he said and argued that the concept of a developed State had to be looked at from a different angle.

He said all sections-- right from a person running a petty shop to tiny and small and large industries-- were affected. The monetary circulation had come to a practical standstill. He did not agree with a questioner that this was an all India phenomenon.

There was a need for a reliable database on the agricultural sector, he said. This was needed to regulate the sector to produce crops that the market required and not in surplus. Such a system was in vogue in countries such as Brazil, Argentina and Thail and.

Another step to boost the rural economy would be to develop medicinal plants and herbs, and help farmers tie up with the end user of these products. The Government was seized of the problems in the power sector and the huge losses suffered by the Tamil N adu Electricity Board as also the losses of the State transport undertakings.

However, it appears that the Government would not think in terms of stopping free supply of power to farmers.

Reliable sources indicated that the Government might consider floating special purpose corporations to raise resources from the market at lower rates of interest, for specific projects.