Tamil Nadu that reported the 2nd largest coronovirus cases in the country is expected to rebound within 2 months says Former Reserve Bank Governor C Rangarajan
Nadu's Economy will rebound to the pre-COVID-19 period in two months, former
Reserve Bank of India (RBI) Governor C Rangarajan said on Monday.
likely to be a contraction during the first few months of the current financial
year due to the pandemic, he said while presenting the report on the state's
The committee was tasked to assess the
impact of coronavirus crisis on the State's fiscal situation
heading a high-level committee to advise the State government on the
medium-term response and measures to be taken to boost the committee was tasked
by the Tamil Nadu government to assess the impact of coronavirus crisis on the
State's fiscal situation and the way forward to improve the position, including
increasing the tax-GDP ratio, diversifying revenue sources and re-prioritising
which submitted a 250-page report to Chief Minister K Palaniswami on September
21st, is optimistic the economy will revive in about two months' time.
an urban employment guarantee scheme committee recommended
committee, which made several recommendations, suggested to the state
government to launch an urban employment guarantee scheme on the lines of the
rural one to address job losses and increase the employment opportunities in
cities. Lakhs of people have been thrown out of jobs in various cities of the
urban centric state due to the pandemic and the consequent lock down
favoured the immediate utilisation of Rs 3,200 crore available with the
construction workers welfare fund to generate employment opportunities.
difficult to predict exactly, but indicators like GST collections, petrol and
power usage indicate a return to growth," Rangarajan said while ruling out
any suggestion for increasing the taxes this year.
is no scope for it. Everyone is demanding reduction in taxes," the former
RBI Governor told reporters after presenting the report to the chief minister
at the Secretariat here.
At this juncture it is difficult to
predict the exact growth rate
one estimate says that in 2020-21, Tamil Nadu's growth rate will be 1.71 per
cent, another predicts there could be a contraction due to the pandemic. At
this juncture it is difficult to predict the exact growth rate," he said
when asked on how the growth rate will be.
Palaniswami had on May 9 constituted a high-level committee under the
chairmanship of Rangarajan, currently Chairman of the Madras School of
Finance Secretary S Krishnan was the coordinator of the 24-member committee,
which interacted and sought views from industry bodies, trade associations,
stakeholders, economic and other experts in India and overseas.