The Hindu : Finance Minister clarifies

Online edition of India's National Newspaper
Saturday, Jun 14, 2003

Southern States

Southern States - Tamil Nadu

Finance Minister clarifies

With reference to the news report, `Plan panel approves Rs. 7000 crores outlay' published on June 12, the Finance Minister, C. Ponnaiyan, writes:

``The Hindu has misreported facts, pulling out of context several important aspects and distorting the whole picture. I would like to refer in particular to the sentence `The previous year the approved outlay had been scaled down from Rs. 6,040 crores to Rs. 5,200 crores for restoring the State's fiscal health and also the credibility of the plan process itself. This is complete misreporting of the Hon'ble Chief Minister's speech. The actual facts based on the speech are: `I wish to bring to your notice that in the year 2002-03, the Plan performance of Tamil Nadu at Rs. 5,841 crores has exceeded the approved outlay of Rs. 5,750 crores. This is in the context of the situation in the previous year, namely 2001-02, when due to the unprecedented fiscal crisis bequeathed to us by the previous government, the approved outlay had to be scaled down from Rs. 6,040 crores to Rs. 5,200 crores. Thus, you will note, we have not only restored Tamil Nadu's fiscal health, but also the credibility of the Plan process itself, and enabled Tamil Nadu to aim at a higher growth trajectory'.

It is therefore clear from the speech made by our beloved leader that the approved outlay for 2001-02 had to be scaled down from Rs. 6,040 crores to Rs. 5,200 crores as a result of the fiscal crisis bequeathed by the previous government and not for restoring the State's fiscal health or the credibility of the plan process as reported. Measures to restore the fiscal health as well as the credibility of the plan process are the result of the bold fiscal reforms initiated by our leader.

Further, your reporter has stated that the Fiscal Responsibility Legislation would be enacted. I would like to state the legislation has already been enacted in the recent budget session of the Assembly in May 2003".

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