CHENNAI: Leader of Opposition Edappadi K Palaniswami and ministers Thangam Thennarasu and EV Velu clashed in the Assembly on Wednesday over the growing debt burden of the state government.
Intervening the discussion on the general budget and agriculture budget for the year 2024-25, Palaniswami said during the 10 years of the AIADMK regime, only Rs 4.10 lakh crore was borrowed.
During the Covid-19 period, the government lost revenue of Rs 1 lakh crore in various sectors.
Palaniswami also argued that borrowing by the government is normal but the DMK government has borrowed too much. “Also, during the AIADMK regime, the borrowed amount was largely spent on capital expenditure. But the DMK government has spent the borrowed money for revenue expenditure rather than on capital expenditure.”
Palaniswami also referred to the fiscal management committee formed by the DMK government and wondered if anyone knew what the committee had done so far.
Finance Minister Thangam Thennarasu said the state had faced two major natural calamities and the government had to spend on relief works and social security schemes. “Besides, due to the stoppage of the GST compensation, the government has lost Rs 20,000 crore. The state government is implementing the monthly honorarium for women from its own funds,” he said.
When Palaniswami charged that the gold for ‘thirumangalyam’ and laptop schemes had been stopped, Thennarasu denied it saying the AIADMK government kept pending distribution of gold for ‘thirumangalyam’ for a few years and the DMK government had to give them.
To this, Palaniswami asked if the laptop scheme had not been stopped and if the minister would say this scheme would continue. Responding, Thennarasu said if the financial position improves, in consultation with the government, a decision would be taken on this regard.
PWD Minister EV Velu said in the past three years, the DMK government has been increasing the capital expenditure on various schemes since the government is completing the schemes which were left half-done by the AIADMK government.
Countering this, Palaniswami said the previous AIADMK regime too continued the schemes left by the DMK regime and reiterated that the DMK government has spent less on capital expenditure.
In 2011, the debt burden of the state government stood at Rs 1.14 lakh crore and till 2021, the debt burden stood at Rs 5.15 lakh crore and of this, except for the debt inherited from the DMK regime, the AIADMK government borrowed only Rs 4.1 lakh crore during the entire 10 years.
For the Udhay scheme, the government paid Rs 25,000 crore. During the Covid period, Rs 1 lakh crore revenue could not be received from excise, road tax and registration sectors.
So, in effect, the AIADMK government borrowed Rs 2.26 lakh crore. But within this, we implemented many schemes and spent more on capital expenditure.
‘Spending from own funds for honorarium’
The state government has lost Rs 20,000 crore after the central government stopping GST compensation, said Finance Minister Thangam Thennarasu. “The government is implementing the monthly honorarium scheme for women from its own funds,” he said.