Budget was a tightrope walk, says fin secretary

Budget was a tightrope walk, says fin secretary

Team TOI

14.08.2021

Given the pandemic backdrop, the revised Budget presented by the DMK government, which also happens to be its first, on Friday was a “tightrope walk”, said S Krishnan, state additional chief secretary-finance.

“We are going through difficult times. The Covid second wave has led to revenue loss, while the state had to incur additional expenditure to meet exigencies. In addition, there is pressure on the new government to fulfil its poll promises. The revised Budget has been prepared taking all these into consideration,” he told reporters on Friday.

“During a pandemic, either reducing expenditure or increasing revenue beyond a point will not help. Hence the tightrope walking exercise.”

The approach will be datacentric governance to avoid losses and to manage government assets efficiently, while taking into account people’s expectations. “The focus will be to improve revenue management and to increase revenue,” Krishnan said, underlying the reforms that could be ushered in to ensure social benefits reach the targeted.

TN borrowed ₹40,000 crore in past three months and is likely to borrow around ₹90,000 crore this year. “The borrowings are in tune to handle government expenditures and not just to fund poll promises. Our focus will be to ensure that borrowed funds are spent on capital expenditure.”

On lowering state’s own tax revenue by around ₹9,000 crore, Krishnan said the growth was good in April and May, but fell in June, while July numbers are awaited. The state earns ₹23,000 crore a year from petroleum products, Tasmac revenue is likely to retain 4% annual growth.

DMK turns right to targeted subsidies

POLITICS OF THE BUDGET

DMK turns right to targeted subsidies

Moves Away From Universal Welfare To Fix Economy

Shaik.Abdullah@timesgroup.com

14.08.2021

No more free lunches for all: That is the essence of the Tamil Nadu revised Budget 2021-22 presented on Friday in the assembly. As it slammed the AIADMK regime for “half-baked projects” that pushed TN into an economic crisis, it turned to the right for an escape route.

“What cannot be measured cannot be improved. Hence, a major initiative for smart metering for all public utilities in the state will be launched,” said finance minister P T R Palanivel Thiaga Rajan, articulating his intention to target people for subsidies — something that resonated more with the policy of his party’s ideological nemesis, the BJP. The man who sports ‘kumkum’ on his forehead in a party of non-believers declared that his government will follow a data-centric governance.

“We welcome it. It’s a step the DMK must take. Sooner or later they must follow in the footsteps of the Centre. When the Union government asked the states to make power meters compulsory for agricultural bore-wells two years ago, they opposed it. Now the DMK is forced to do it. This shows their duplicity and contradiction,” said R Srinivasan of the BJP, giving the DMK bouquets and brickbats in equal measure.

The state’s first paperless Budget was also the DMK’s first in 10 years. But the state’s financial situation didn’t suit its plans. Subsidies are being enjoyed by people from all economic backgrounds, the finance minister had complained in the white paper on the state’s finances released on Monday.

Those who use more electricity get more subsidies. At least ₹18,000 crore in electricity bills were under-recovered in 2020-21, he said. He also faulted unmetered water supply in Chennai.

“This was unfair and regressive as most of these connections were enjoyed by huge houses and mansions,” the minister said.

In the guise of boosting capital expenditure to provide economic stimulus during the pandemic, the previous government had sanctioned several “half-baked and ill thought out projects in the last minute” in the highways and irrigation sectors and for urban local bodies, Rajan said in his Budget presentation.

“We have made a careful analysis of such projects. Only genuinely beneficial projects justified based on detailed cost benefit analysis will be implemented,” he said”

Numbers told the story: TN’s fiscal deficit for 2020-21 was ₹92,305 crore (4.43% of GSDP). Each family had a public debt of ₹2,63,976. The average revenue deficit for all states and UTs was 0.1% of GDP in 2017-18 and 2018-19. It was 1.5% and 1.4% of GSDP in Tamil Nadu.

DMK MP T K S Elangovan called it a temporary measure. “We still believe in subsidy for all. The party will not deviate from its ideology. It’s only a short-term diversion, a temporary phenomenon because of the challenging economic circumstances created by the pandemic. We may revert to universalisation of benefits even in the next Budget if the situation improves,” Elangovan said.

The party’s friends on the Left seem to agree.

“The difference is in the intention. The BJP’s approach is to help corporates profit more. They want to reduce subsidies and help corporates get a bigger share of the public money. But the DMK’s egalitarian social ideology is to give subsidies to all those who deserve it. It’s a path-breaking Budget as it would increase the allocation for the poor based on data. The Budget would expand the scope of the schemes and take them to more people,” CPI leader C Mahendran said.

Biryani ad using Hindu saint image sparks row

Biryani ad using Hindu saint image sparks row

Belagavi:14.08.2021

Hindu organizations are outraged after a famous hotel here specialising in biryani released posters containing the image of a Hindu saint appreciating the meat and rice dish. The hotel chain across the city had to be shut and police deployed from Thursday evening to prevent any violence.

‘Niyaz Hotel’, which owns many restaurants in the city, had released the posters on social media where a Hindu saint was seen asking his devotees to give him biryani instead of ‘Balidaan’ (sacrifice).

The poster also contained the caption “Guruji after tasting Niyaaz”.

The caption to the post on social media said, “Our Biryani to all other Biryanis-Aham Brahmasmi (I am divine)”.

The post went viral and Hindu organizations were up in arms over the advertisement. They claimed that the hotel management has insulted Hindu saints and Hindu traditions. Vishwa Hindu Parishad (VHP) and Bajrang Dal leaders met the Police Commissioner and submitted a memorandum against the hotel management.

Local BJP leaders gave a call to Hindus to come forward and register their protest.

Niyaz hotel management later took down the controversial poster and apologised for hurting religious sentiments of the Hindus. IANS

Guv rejects 3 Alagappa V-C candidates

Guv rejects 3 Alagappa V-C candidates

TIMES NEWS NETWORK

Chennai:14.08.2021

Governor Banwarilal Purohit on Wednesday rejected the three shortlisted vice-chancellor candidates for Alagappa University saying that none of the candidates were found suitable for the V-C post. "Governor-chancellor has interviewed three candidates from the panel submitted by the search committee of Alagappa University at Raj Bhavan on August 11. The governor found that none of the candidates was suitable for the post of vice-chancellor of Alagappa University," a letter from governor secretary Anandrao V Patil to the registrar of the universiy said.

"As per the section 13 (1) of the Alagappa University Act, 1985, as amended in the Tamil Nadu Universities Laws (Amendment) Act, 1992, governor-chancellor has not approved any of the persons in the panel recommended by the search committee as vice-chancellor of Alagappa University," he said in the letter adding that the governor ordered that another search committee be formed to give a fresh panel of three different names. The letter further asked the registrar to form a new search committee for selection of vice-chancellor of Alagappa University, Kariakudi, at an early date.

TN extends maternity leave for govt employees

TN extends maternity leave for govt employees

Team TOI

Chennai:14.08.2021

Tamil Nadu has enhanced the period of maternity leave for women government employees to one year from 9 months as promised in the DMK's election manifesto.

Finance minister Palanivel Thiagarajan announced the extension of leave on the floor of assembly during his maiden budget speech on Friday.

The scheme will be restricted to women with less than two surviving children with effect from July 1, he said, amid applause from his cabinet colleagues and other members.

The policy will help the state’s target of increasing the number of babies being exclusively breastfed in the first six months of life, help them receive vaccinations and care for their nutritional status. The maternity leave will help mothers get back to good health in a short period of time, said officials from the social welfare department.

“Tamil Nadu provides cash benefits, free vaccination and nutrition supplement for mothers and babies. But several mothers are not able to care of themselves and their babies because they don’t have the time,” said a senior social welfare department official. “This will change, with longer maternity leave,” she said.

Flight cap to UK hiked to 60 services per week

Flight cap to UK hiked to 60 services per week

New Delhi: 13.08.2021

The Ministry of Civil Aviation (MoCA) has increased the cap on special flights that operate between India and the UK from 30 to 60 flights per week from August16onwards.

The ministry's decision has come five days after Sanjeev Gupta, Secretary, Inter-State Council Secretariat, Union home ministry, had complained on Twitter that an economyclass ticket on Delhi-London flights of British Airways, Air India and Vistara for August 26 was priced between Rs 1.2 lakh and Rs 3.95 lakh.

After Gupta's post, Vistara had said on Sunday that pricing is always a function of supply and demand.

"There are only 15 flights a week allowed currently on India-UK route for Indian carriers and when there is relaxation and more capacity allowed, it will automatically bring down prices," the carrier had said. PTI

Resident doctors’ strike: All barring a few join duty

Resident doctors’ strike: All barring a few join duty

TIMES NEWS NETWORK

Ahmedabad:13.08.2021

The deadlock between resident doctors and the state government was resolved on Thursday as the majority of striking doctors resumed duty or promised to do so. Sources privy to the development said a faction of doctors is still not in favour of a truce, but the majority of the doctors across the state accepted the offer of the state government.

Resident doctors in Rajkot, Surat, Vadodara, Jamnagar and Bhavnagar resumed duty, whereas in Ahmedabad, senior resident doctors agreed to the proposals. The Junior Doctors Association (JDA) office bearers could not be contacted despite several attempts to know their stance.

On Thursday, the state health department issued a GR where they mentioned that the senior residency (SR) years of resident doctors would be considered as part of the bond period in the ratio of 1:1. They will also get deputation at district or sub-district hospitals and would only get stipend for it, sans DA or other perks.

‘The doctors on bond will have to complete the period according to the new arrangements. The arrangement is only for the 2021 batch and won’t serve as a precedent for the future. Senior residency provisions will remain the same,’ the GR states. The GR also revoked the order to doctors to vacate hostels.