Tamil Nadu seeks central funds to pay debt

July 6th, 2011 - 9:18 pm ICT by IANS  

New Delhi, July 6 (IANS) Tamil Nadu Chief Minister J. Jayalalithaa Wednesday urged the central government to provide a special package to meet the financial obligations of the state, especially the Rs.40,000-crore debt of the state-run electricity board.

“The financial position of the state is bad. Tamil Nadu electricity board has Rs.40,000 crore debt,” Jayalalithaa told reporters after meeting the Planning Commission here.

Jayalalithaa said she had requested the plan panel to recommend to the union cabinet a special package for the state.

“The outstanding debt of the state today has climbed to Rs.101,541 crore in addition to the outstanding debt of Tamil Nadu Generation and Distribution Company of over Rs.40,000 crore,” she said.

“The state will not therefore be in a position to achieve the stipulations of zero revenue deficit and fiscal deficit below three percent,” Jayalalithaa added.

The Planning Commission Wednesday approved Rs.23,535 crore annual plan of the state for fiscal 2011-12.

Jayalalithaa said she was happy with the plan size but it would not solve the problem of the poor fiscal health of the state.

“This is what we had expected. I am quite happy with it,” she said, adding a special central assistance would be needed to solve the major problems of the state.

Planning Commission deputy chairman Montek Singh Ahluwalia asked the state to improve efficiency of its social programmes.

He said the commission would be willing to help the state in working out a development plan which would make development more inclusive.

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