Remarkable turnaround in TN’s finances will reflect in budget : Fin Min

Chennai, Mar 5 : Asserting that Chief Minister M K Stalin’s vision to make Tamil Nadu an one trillion economy by 2030 was achievable. Finance Minister Palanivel Thiagarajan today said the ruling DMK government’s remarkable turnaround in Finances in the last ten months will be reflected in the State Budget to be presented in the coming weeks. Participating in a video session at an event organised by the Confederation of Indian Industry (CII) with the theme, ‘Tamil Nadu: USD One Trillion Economy by 2030 – Business and Government Working Together,’ as part of CII Tamil Nadu’s annual meeting here, he said the DMK government has made a remarkable turnaround in terms of finances. “The finances of the State had deteriorated so rapidly and we have been able to make such a remarkable turnaround and it will be evident when we present the revised estimates for the year”, he added. Expressing concern over the rise in inflation levels that were not seen in the last 15 to 25 years, the Minister said “this is a disconcerting and concerning development that may have implications on what our future growth potential is”. He said the global conflicts risks that have escalated over the last couple of weeks could go anywhere, and that was another headwind. Pointing out that the USD One Trillion Economy by 2030 target was achievable, he said “If we start with the target of a trillion we are roughly between 290 billion and 300 billion today depending on the foreign exchange rate at any given minute, which means in about ten years, we need to have about 14% CAGR a year in nominal terms.” “Now 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% or 10.2% so you add in say 5% inflation on top of that, on an average it was probably 15 plus so clearly a doable goal,” he added. GV 1735

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