A model for the country and other states!
We have seen many Union Economic Survey and Budget as well as State Budges. Kerala Budget especially by Dr. Thomas Issac used to have innovations and visionary schemes for the majority of the people. This time Tamilnadu has shown the way.
First Economic Survey, TN
The Economic Surveys at the Union level mostly used to be used as propaganda materials, especially in the last seven years, without any critical analysis and directions. Even if some directions are given, they are always ignored by the Budget, which is prepared with more slogans than real outcomes. For example, there have been no useful schemes for generating employment, education is becoming more and more privatized, and healthcare is also increasingly in the private sector. By giving just 5 kg of rice to the poor (80 crore people), the government thinks it is eliminating poverty.
For the first time, Tamil Nadu has come out with an Economic Survey for the State titled Growth with Social Justice. It has examined nine key sectors over the last five years, the historical changes that have taken place since 1962, and has provided suggestions for the future in each chapter/sector.
Status of Tamilnadu
Tamil Nadu has 4% of the land and 6% of the population but contributes 3.21% of the Gross Domestic Product (GDP) of the nation. The GDP growth of the country is 6.48%, whereas that of Tamil Nadu has been more than 8% from 2021-22 onwards. The per capita income is Rs. 2.78 lakh, whereas for the country, it is Rs. 1.69 lakh.
The service sector contributes 53.63%, industry 33.37%, and agriculture 13%. To support farmers, there are 284 regulated markets, 525 warehouses, 395 sheds, 421 drying centres, 863 commercial shops, and 268 cold storages. Tamil Nadu exported fish worth Rs. 6,854 crore last year. There are 35.56 lakh MSMEs registered with the Udyam portal.
The Credit Deposit Ratio of the state is 117.7% due to better repayment and economic conditions that support enterprises. The expenses on social security have increased from Rs. 79,859 crore to Rs. 1.16 lakh crore in the last five years, whereas at the Union level, it is decreasing. The Gross Enrolment Ratio in colleges is 48%, whereas at the country level, it is 27%. The college dropout ratio is just 4.5%.
There are 50 research institutions, 100 government colleges, 506 engineering colleges, 492 polytechnic/ITIs, 36 government medical colleges, and the healthcare system is better than the national level, with 8,713 sub-PHCs, 2,332 PHCs, and 372 government hospitals.
The state has already started a Climate Action Plan (2023-2030).
Novel ideas
Some of the suggestions made in the Economic Surveys that are novel include competency mapping for students, the introduction of women-centric courses, women’s hostels, student hostels, crèches for children, improvement in education standards, skill development to suit the AI era, improving action on the Climate Change Action Plan, and employment generation in all areas.
BUDGET
The Budget TN 2025-26 has the title. “Growth for All- Everything for every one”
Some of the highlights are:
- After the introduction of payment of Rs.1000pm to college going girls, the enrolment has increased by 19%. The capital expenditure of Rs.3851 Cr is allotted for education. The highest allotment in the budget is provided for education which is Rs.55261 crores, 20 lakh college students are going to be provided high tech devices worth Rs.2000 crores in 2 years.
- Capital Expenditure for a year is Rs.57231Cr of which Rs.18197 Cr for Roads and Bridges; Rs.10973 Cr for Transport and Energy; Rs.6292 Cr for urban development; Rs.6231 Cr for water supply schemes; Rs.4465 Cr for water bodies and Rs.3851 Cr for education. This will generate employment, make businesses competitive, farming will improve and there will be overall development.
- Many attractive schemes have been announced.
1. Reduction in registration fee by 1% for women for registering assets upto the value of Rs.10 lakhs (this should be increased)
2. Women entrepreneurs development scheme
3. Hitech devices to college students
4. World Tamil Olympiad
5. New Archeological Excavation at 7 places
6. New Archeological Museums
7. Construction of 1 lakh houses and reconstruction of 25000 houses in rural areas.
8. Reconstruction 5256 houses in urban areas and urban housing schemes
9. Climate resilient Sponge Park
10. Spaces for writers to produce books
11. River side development work in 5 corporations
12. New combined water supply scheme for 7 districts benefiting 28.82 lakh people.
13. Retrofitting 102 combined water supply schemes
14. Ring pipeline Project for Chennai
15. New Water Reservoir for Chennai
16. Comprehensive Water Resources Development Programme
17. Extension of Chennai Metro Rail in 4 routes (Union Govt not funding metros in Tamilnadu)
18. New Airport at Rameswaram
19. 2 new research Institution at Chennai and Coimbatore on Basic Sciences & Mathematics
20. Under Social Justice, Senior Citizens Day Care centre in 25 locations; Assistance to Children who have lost both parents; 10 lady comrades working women’s Hostels; Girl student Hostels at Chennai and Madurai.
21. Anna University to come under top 10 in the country
22. Chennai science centre
23. 10 new Arts and Science colleges
24. Establishing Centre of Excellence in Govt Engineering Colleges (Every District has one)
25. Chess in school curriculam
26. Tribal livelihood policy
27. Social Harmony Awards to Panchayats
28. Annal Ambedkar overseas Higher Education Scheme
29. 17 New ITIs
30. Rs.20000 Subsidy for E Scooter for Gig workers
31. Common Facility Centre for MSMEs at 5 centres
32. Tamilnadu Semi Conductor Mission 2030
33. New Tidel Park in Hosur (Knowledge Corridor)
34. Industrial park for Trichy
35. Mini Tidel Park at Virudunagar
36. Two new footwear parks
37. 9 New SIDCO Industrial Estates
38. Space Tech Fund, Viyan LUGC-XR Hub
39. Powerloom Modernisation Scheme
40. Eco Park at Ooty, Renovation of 17 Heritage structures, 10000 New SHGs(Already there are 4.76 lakh SHGs)
41. Filling up 40000 Vacancies in Govt
These are in addition to improving schemes providing subsidies to single women, girl students from government schools, boy students for higher education, the CM’s Breakfast Scheme in government and aided schools, the Noon Meal Scheme, Integrated Child Development Services, the Maternity Benefit Scheme, and social security pensions for the elderly and widows. Other initiatives include the Chennai Metro Rail and an allocation of Rs. 14,000 crore to the Public Distribution Scheme, which provides 20 kg of rice/wheat, 1 kg of dal, and 1 kg of oil free every month to every cardholder.
This is a people’s budget with a mission. Humans need food, clothing, shelter, healthcare, education, employment, and adequate rest.
The Tamil Nadu budget has addressed all these issues. Preventive healthcare has been brought into focus. Education has been given the most importance, with the two-language formula, which has succeeded well.
In spite of the Union government not releasing NREGA funds of Rs. 3,796 crore and Samagra Shiksha funds of Rs. 2,300 crore, the government is determined to improve the lives of all. A new Global City near Chennai, at Rs. 2,000 crore, has been proposed. There are 36 government medical colleges in the state. Training programs are provided for entry into government services.
This Economic Survey should be studied by the Chief Economic Advisor of the Union government, the Finance Minister of the Union government, and every state.
There are many things which can be adopted.
There are few demands the State Govt has to fulfill.
- Bringing back the Old Pension Scheme as promised.
- Look for alternatives for the New Airport Proposed at Parandur which will destroy so many water bodies and farm lands. There are alternatives available.
- Waste to Energy proposals have to be studied elsewhere as these are huge failures.
- There are few districts which have not been adequately provided with their needs based on their scope.
- The women development programme should include Self Help Groups which are doing well outside the women’s development corporation and also learn from them. Government cannot replace Non Government Organisations which are not for profit.
Thomas Franco is the former General Secretary of the All India Bank Officers’ Confederation and a Steering Committee Member at the Global Labour University.
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