Despite the negative impact of the economic slowdown that has led to the scaling down of growth projections for the current fiscal at the national level, Tamil Nadu plans to spend massive sums on infrastructure and social security in the 12 Plan period (2012-17).
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Governor K. Rosaiah on Monday announced an ambitious outlay of Rs.1, 85,000 crore for plan schemes over the next five years.
More than double size
This figure will be more than double the size of the 11 plan outlay of Rs.85,000 crore, the Governor said in his address to the Tamil Nadu Assembly. “This will put Tamil Nadu back on the path of accelerated growth.”
The prolonged spell of global economic slowdown posed a real threat to fiscal stability and the government's ability to spend more. “Slow growth, persistently high inflation, depreciating rupee value and soaring interest rates have made it difficult for achieving our higher growth targets,” Mr. Rosaiah said.
The negative impact of such slowdown on the State's economy was inescapable. Yet, it wanted to ensure that government spending on infrastructure and social security was not compromised in any manner.
Food grains output
The Governor said that food grains production this year was likely to cross 100 lakh tonnes for the first time as against 75.95 lakh tonnes in 2010-11. He said this was possible as the State has had a bountiful ‘kuruvai' crop, thanks to the Chief Minister's decision to release water from the Mettur dam early.
The government's scheme of distributing milch cows, sheep and goats has received remarkable response from the rural poor and about 1.12 lakh families will benefit during 2011-12, he said.
Many initiatives had been taken to promote deep sea fishing and improve infrastructure in the fisheries sector.
Concern at attacks
Expressing deep concern over continuing attacks on, and harassment of, Tamil Nadu fishermen by the Sri Lankan Navy, he said that the Government of India should take it up strongly with Sri Lanka. The Governor reiterated the government's resolve to regain Katchatheevu, the island ceded to Sri Lanka in 1974.
On the issue of ending the discharge of effluents into the Noyyal, Mr. Rosaiah said the government had sanctioned Rs.179 crore as interest-free loan to restart closed Common Effluent Treatment Plants (CETPs).
In addition, Rs.75 crore had been given as loan to the Pollution Control Board for paying compensation to farmers in the Noyyal ayacut pending determination of the exact quantum by the courts.