S. Ramadoss

CHENNAI: The Pattali Makkal Katchi, the ruling Dravida Munnetra Kazhagam's ally, has advised the State Government to target its subsidy burden.

Making public its fifth "alternative budget" for the State here on Tuesday, PMK founder S. Ramadoss said the corrective course was required in view of the rising non-Plan expenditure, though the Government was duty-bound to provide subsidies for the economically weaker sections. The party cautioned the Government against increasing non-Plan expenditure indiscriminately. Noting that several promises of the DMK centred on the welfare of the poor, the PMK document said their implementation might increase non-Plan expenditure.

Expressing concern over the State's rising debt burden, the alternative budget pointed out that as on March 31, 2001, the debts amounted to Rs. 28,685 crore; five years later, they stood at Rs. 56,094 crore. In 2006, the monthly interest commitment was Rs. 446 crore. The per capita debt burden was Rs. 8,764. If remedial steps were not taken immediately, the Government would not be able to implement the 2003 Tamil Nadu Fiscal Responsibility Act.

Though the Union Government would compensate the shortfall in revenue to the extent of 75 per cent this year following the introduction of Value Added Tax (VAT), it appeared that uncertainty marked the estimated revenue receipts.

Calling for a new approach to development, the PMK said while the Gross State Domestic Product and the per capita income went up, poverty and unemployment were also on the rise. The fact that a large number of people were reeling under poverty even after 60 years of Independence demonstrated the failure of the Government's approach, he said.

Instead of the current method of survey for identifying people living below the poverty line, a new method should be adopted. This should take into account the nature of dwellings and the availability or otherwise of toilet facility. Factors such as whether each prospective beneficiary family had an illiterate male member or unemployed male members or alcoholic male members should also be ascertained. Pointing out that Tamil Nadu was yet to sign an agreement with the Centre on the devolution of power to panchayats, Dr. Ramadoss said several States had signed pacts with the Union Government.

"If the State Government were unhesitant [in signing the agreement], it should have signed by now," he remarked. On the issue of a new airport for Chennai, the PMK leader said there should not be any further delay in identifying the new site.

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