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COVID-19 challenges: TN forms panel under ex-RBI Guv Rangarajan to improve fiscal position

PTI   

COVID-19 challenges: TN forms panel under ex-RBI Guv Rangarajan to improve fiscal position
Business1 min read
Chennai, May 9 () The Tamil Nadu government onSaturday set up a high-level committee headed by formerReserve Bank of India governor C Rangarajan to examine fiscalchallenges facing the state owing to the COVID-19 pandemic andsuggest the way forward to improve its fiscal position.

The committee, which will also consist of FinanceSecretary S Krishnan as coordinator, will submit its report tothe government within three months, according to a GovernmentOrder.

The committee, with 21 members, would assess theoverall immediate and medium term impact of the COVID-19pandemic on different sectors of the state's economy includingthe impact of lockdown, additional costs and implications dueto social distancing and their precautionary measures.

Also, it would assess the opportunities and threatsin the short and medium term, suggest measures required tohelp the important sectors of the economy to overcome theimpact of the virus pandemic.

Apart from identifying specific reform measures tobe taken by the state government to support and promote thegrowth of the important sectors of the economy, the committeewould assess the impact of the crisis on state government'sfiscal situation and way forward to improve the fiscalposition, including increasing the tax; GDP ratio anddiversifying revenue sources and reprioritising expenditure.

The committee will also identify fiscal issues andeconomy protection measures the state should take up with theUnion government for necessary action and possible sources offinancing and funding for different sectors includinginfrastructure projects, small business and other enterprises.

On February 20, 2020, Deputy Chief Minister OPaneerselvam who holds the finance portfolio, announced thatan expert committee would be constituted to improve the tax:GSDP ratio of Tamil Nadu.

Now taking into account the COVID-19 pandemic andlockdown which has posed serious economic and fiscalchallenges the role of the committee has been redefined.COR VGN BNWELCOME BNWELCOME

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