K. Annamalai responded to the White Paper released by the TVK government on Tamil Nadu’s finances, emphasizing the urgent need for corrective actions to address the state’s fiscal challenges. The report highlighted a significant increase in Tamil Nadu’s outstanding debt, reaching nearly Rs 10 lakh crore, with interest payments consuming a substantial portion of the state’s revenue receipts.
Annamalai pointed out the decline in the state’s Own Tax Revenue to Gross State Domestic Product ratio, indicating a mismatch between revenue growth and economic expansion. He also raised concerns about the financial burden carried by major state public sector undertakings, particularly in the power, transport, and civil supplies sectors, contributing to the overall fiscal stress faced by Tamil Nadu.
The White Paper underscored issues of systemic corruption and administrative inefficiencies leading to revenue losses, including the undervaluation of real estate transactions impacting revenue collection. Annamalai warned that with a projected decline in the state’s working-age population by 2031, immediate efforts towards fiscal consolidation and revenue enhancement are crucial to ensure long-term financial sustainability.
Annamalai urged the TVK government to focus on rectifying the financial challenges highlighted in the White Paper and proposed the establishment of a consultation group comprising experts from various sectors to develop effective solutions for Tamil Nadu’s fiscal stability.
