Don’t oppose reforms for political reasons; help State increase revenue: Finance Minister

Finance Minister Palanivel Thiaga Rajan appealed to political parties to view from the prism of social justice the government’s genuine reform measures to increase revenue

Finance Minister Palanivel Thiaga Rajan on Tuesday appealed to political parties to view from the prism of social justice the government’s genuine reform measures to increase revenue, and not blindly oppose them for political reasons.

In an apparent reference to the demand from Opposition parties to extend the proposed cash assistance scheme for women to all households, he said that such universal implementation of the scheme, instead of directing it to deserving families, would significantly increase the State’s debt burden and lead to inflation.

He made the remarks during his reply to the discussion on the 2023-24 Budget in the Assembly. He said that while the State had done extremely well in planning and expenditure, it was still striving to increase revenue.

He cited the opposition to the recent power tariff hike which, he said, was implemented in a progressive manner, without affecting the poor. When the value of the rupee had increased roughly three-fold since 2006-07 due to inflation, and the State’s economy had grown nearly ten-fold, how could the State government increase its revenue and spend on people’s welfare without such reforms, he asked.

Stressing that he was in favour of providing free power to farmers, he said the misuse of the scheme must, however, be curbed. He said an exercise undertaken by Andhra Pradesh had revealed that around 30% of the beneficiaries were misusing the scheme. He stressed the need for reforms in public sector undertakings such as Tangedco, Tamil Nadu Civil Supplies Corporation and Tamil Nadu State Transport Corporation, which had incurred more debt during AIADMK rule.

Citing an interview with late Chief Minister M. Karunanidhi, in which he had stressed the importance of dissent and the role of Opposition parties, the Minister said he felt it should be the responsibility of political parties to think of what was suitable for social justice.

He said the demand for universal implementation of schemes could be fulfilled if Tamil Nadu had plenty of oil or other natural resources, like the Gulf countries or Australia did. Increasing the debt to fund such schemes to benefit everyone would be a betrayal of social justice, as it would increase the debt burden on the future generation – the rich and poor alike, he said.