The DMK on Monday warned the AIADMK government in the Assembly about the State’s rising revenue deficit. However, the government defended its record, arguing that the fiscal deficit and borrowing were “well within norms”.
Opening the debate on the Budget in the House, DMK legislator Palanivel Thiagarajan (Madurai Central) said the government’s spending on investments had reduced. He accused the government of maintaining “false prestige” by claiming that the fiscal deficit and borrowing were within norms.
Deputy Chief Minister O. Panneerselvam, who holds the Finance portfolio, said, “I have already given an explanation on this issue. You are raising this issue only because you are in another party.”
More borrowing
However, Mr. Thiagarajan disagreed and said the State government was borrowing more for revenue deficit than for investing in new projects. If the government borrowed for revenue deficit rather than investment, the growth rate would fall, he pointed out.
“You cannot take pride by saying ‘we have not failed’. You have to realise that we were earlier achieving distinction,” he said.
Mr. Panneerselvam said the borrowing had gone into investments during the erstwhile DMK regime too. Mr. Thiagarajan contended that though it was the AIADMK government which passed the Tamil Nadu Fiscal Responsibility Act, 2003, the party did not function in line with the Act.
