Tamil Nadu Finance Minister P.T.R Thiagarajan has said that after the DMK government assumed office in May 2021, the finances of the state have made a remarkable turnaround.
He was addressing a meeting of the Confederation of Indian Industries (CII) through a live video session. The event titled “Tamil Nadu: $ One trillion economy by 2030- Business and Government working together”, is part of the CII Tamil Nadu chapter’s annual meeting.
While addressing the meeting, he said: “The finances of the state had deteriorated so rapidly and a remarkable turnaround has taken place as far as finances are concerned. It will be evident when we present revised estimates for the year in a couple of weeks when the budget is presented.”
He, however, said that there were few major macro risks and that the global inflation levels are rising to levels not witnessed in the last 15,20, 25 years.
The minister added that the inflation rate is a concerning development that may have implications on the future growth potential.
Palanivel Thiagarajan also said that the global conflict risks that have escalated over the past few weeks are a major concern and inflation rates and global economy could go anywhere.
He also said that the Chief Minister’s project of $One Trillion economy by 2030 is doable and said: “If we start with a target of a trillion, we are roughly between 290 billion and 300 billion today depending upon the foreign exchange rate at any given minute. This means that in about ten years, we need to have about 14 per cent a year CAGR in normal terms.
“If you look back, in the last 15 to 20 years, the last time the DMK was in power between 2006 and 2011 the CAGR was 10.1 per cent of 10.2 per cent. So you add in say 5 per cent inflation on top of that and on an average it was probably 15 pus and so a clearly doable goal.”
The minister also said that the Jayalalaithaa headed previous government had a document termed Vision 2023 that was built with inputs from World Bank, IMF and others. Thiagarajan said that, however, after releasing the document in 2013, Jayalalithaa got into legal tangles and other troubles and it was not taken forward.
He said that the first three years for any ten year plan is crucial and if the first three years are lost, then it will loose steam and said that the DMK government is poised to operate and administer properly.