CHENNAI: As the pandemic wanes and economy bounces back, the State government, according to Finance Minister Palanivel Thiaga Rajan, has decided to focus on social infrastructure and development.
The minister said from an economic perspective, social welfare and inclusive economic development are the two sides to be balanced.
“Last year, amid the resurgence of the pandemic, we consciously tilted the scales towards social welfare, with the goal of alleviating the pain among the weaker sections of society. Now, as we see the economy bouncing back, we must rebalance our priorities and focus on social infrastructure and development without compromising on welfare schemes,” he said.
However, the State’s finances still have a long way to go. Stating that the State is in a difficult situation where the expenditure on salaries and pensions is large even while the vacancy rate is high, the minister said the current model for recruitment and training needs urgent reform.
“The pandemic has further exacerbated the situation. This year, we started the process by amending some rules for both recruitment and training; the government will constitute a Human Resources Reforms Committee, which will be tasked with proposing a comprehensive road map for reforms in human resource management within a six-month period,” he added.
The minister also exuded confidence that the Union government would pay heed to the request of Chief Minister MK Stalin to extend the GST compensation period by two more years beyond June. He said the revenue growth that Tamil Nadu witnessed during the Value Added Tax regime had not been achieved since the introduction of GST.
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Moreover, the pandemic had severely affected the finances of all States, he said. Meanwhile, Finance Secretary N Muruganandam listed key investments in school education and the reshaped higher education scheme that provides incentives for girl students. The latter marks a significant shift away from the patriarchal value placed on marriage. The finance secretary pointed out that only 46 per cent of girl students take up graduation after school and this scheme was announced to encourage more women to pursue higher education.
Muruganandam also highlighted that several schemes had been announced towards the creation of new jobs. “The government will encourage start-ups and products manufactured by these entities would be directly procured by government departments,” he said. Skilling of the labour force and introduction of Mobile Information-cum-Assistance centres for migrant workers through voluntary organisations are also in the works to ensure reach of welfare schemes and raise awareness of legal rights.