Tamil Nadu forms a panel under former RBI Governor C Rangarajan to improve the fiscal position

Tamil Nadu’s government on Saturday established a high-level committee chaired by former Reserve Bank of India Governor C Rangarajan to examine the fiscal challenges facing the state due to the COVID-19 pandemic and suggest the way forward. to continue to improve your fiscal position. The committee, which will also be composed of Finance Secretary S Krishnan, as coordinator, will present its report to the government within three months, according to a Government Order.

The 21-member committee would assess the immediate and medium-term overall impact of the COVID-19 pandemic on different sectors of the state’s economy, including the impact of the blockade, additional costs, and implications due to social distancing and its safety measures.

In addition, it would assess the opportunities and threats in the short and medium term, suggest the necessary measures to help important sectors of the economy to overcome the impact of the virus pandemic.

In addition to identifying specific reform measures that the state government should take to support and promote growth in important sectors of the economy, the committee would assess the impact of the crisis on the state government’s fiscal situation and the way forward to improve the tax position, including tax increase; Proportion of GDP and diversified sources of income and prioritization of expenses.

The committee will also identify fiscal problems and economic protection measures that the state must adopt with the Union government for the necessary action and possible sources of financing and financing for different sectors, including infrastructure projects, small businesses and other companies.

On February 20, 2020, the Deputy Chief Minister O Paneerselvam, who owns the finance portfolio, announced that an expert committee would be constituted to improve the tax ratio: Tamil Nadu GSDP.

Now, considering the pandemic and the COVID-19 blockade that has posed serious economic and fiscal challenges, the role of the committee has been redefined.