The Annual Plan for 2013-14 for the State of Tamil Nadu was finalised today at a meeting between Shri Montek Singh Ahluwalia, Deputy Chairman, Planning Commission and Ms. J. Jayalalithaa, Chief Minister of Tamil Nadu. The Plan size has been agreed at Rs. 37,128 crore which includes the central assistance to the State Plan of about Rs. 3,165 crore. In addition, an amount of Rs. 9,000 crore is likely to flow from the Centre to Tamil Nadu through various Centrally Sponsored Schemes. Thus, taking all resources, Plan assistance from the Central Government to the State of Tamil Nadu is expected to be over Rs.12,000 crore during 2013-14.
Planning Commission complimented the State Government for its sound fiscal position arising from the significant increase in mobilisation of resources, especially State™s own tax revenue for the State Plan. The State™s Tax-GSDP ratio is likely to cross 10% during 2013-14 making it as one of the leading States in the country in terms of tax mobilisation. The outstanding liabilities as a percentage of GSDP are well within the fiscal consolidation requirements as per the 13th Finance Commission.
It was noted that the State continues to maintain favourable social indicators, especially health indicators such as birth rate, Infant Mortality Rate (IMR), Maternal Mortality Rate (MMR), Total Fertility Rate (TFR), Neo-natal Mortality Rate (NMR). The State also ranks better than the national average in most of education indicators. However, there was need to focus on issues of quality of education and reducing the gender gap.
Planning Commission noted that as has happened in the country as a whole, the growth rate of Gross State Domestic Product (GSDP) for Tamil Nadu in 2012-13 decelerated from 7.3% in 2011-12 to 4.6% which was slightly lower than the national average of 5%. The meeting discussed the steps to be taken to increase the growth rate, including especially revival of investment and development of infrastructure. It was noted that power sector performance would be critical as the State is currently suffering from a large deficit.