Planning Commission on Monday approved Tamil Nadu’s Rs 37,128 crore annual plan expenditure for the current fiscal, which is 32.8 per cent higher than the approved outlay for 2012-13.

The state’s annual plan outlay for 2013-14 was finalised here at a meeting between Commission’s Deputy Chairman Montek Singh Ahluwalia and Tamil Nadu Chief Minister J Jayalalithaa.

According to an official statement, the plan size has been agreed at Rs 37,128 crore which includes the central assistance of about Rs 3,165 crore.

In addition to the central assistance, an amount of Rs 9,000 crore is likely to flow from the Centre to Tamil Nadu through various Centrally Sponsored Schemes (CSS), it said.

Thus, the Plan assistance from the Centre to Tamil Nadu is expected to be over Rs 12,000 crore during 2013-14.

During the meeting, the Commission pointed out that state’s economy or Gross State Domestic Product (GSDP) decelerated from 7.3 per cent in 2011-12 to 4.6 per cent in 2012-13, which was lower than national average of 5 per cent.

The meeting discussed the steps to be taken to accelerate the growth rate, including revival of investment and development of infrastructure.

It was also noted that power sector performance would be critical as the state was currently suffering from a large deficit in the sector.

Later talking to the media, Mr. Ahluwalia said, “..like everybody else they had a slowdown in growth this year. I think they have problems in the power sector, they have difficulties in getting coal supplies.”

“...like in the rest of the country, water is going to be very big issue (in the state). Tamil Nadu is urbanising very rapidly and their own forecast according to the vision documents they have prepared (is that) by 2023 Tamil Nadu will be 67 per cent urban,” he added.

According to Mr Ahluwalia, the Chief Minister expressed her reservations on transfer of funds. She wanted that the funds should go to the consolidated fund of the state and not to be passed on directly (for schemes).

“I think she also has reservations on Direct Benefit Transfer (DBT) scheme and she expressed that,” he said.

The Commission commended the state for its sound fiscal position arising from the significant increase in mobilisation of resources, especially its own tax revenue.

The state’s Tax-GSDP ratio is likely to cross 10 per cent during 2013-14 and the outstanding liabilities as a percentage of GSDP are well within the fiscal consolidation requirements as per the 13th Finance Commission, the Commission noted during the meeting.

It was also said 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) and 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, the Commission said.