Financial crisis: Tamil Nadu explores ways to get out of red

Chennai: Tamil Nadu Cabinet on Thursday discussed ways to improve revenues in the face of financial crisis due to the increased burden of staff wages, particularly since the recent transport strike. Chief Minister Edappadi K Palanisami presided over the meeting that lasted about 90 minutes post-lunch. It was his fourth Cabinet meeting since assuming office on February 16.

The Cabinet, according to sources, discussed ways of improving government revenues from the real estate sector. The government is likely to allow cooperative loans for constructions on even unapproved land. It is also possible that the guideline values would see a downward revision to trigger energy in the real estate sector, where sale registrations have fallen drastically in the last few months. These two measures are expected to increase revenues for the government from the expected spurt in land transactions.

The Cabinet also discussed the anti-Tasmac protests taking place across the state, which caused revenue loss and disturbed law and order. While the revenue loss due to the closure of the Tasmac shops is not so significant—an estimated 12 per cent drop in revenue resulted though almost 50 per cent of the 6500 shops were closed over the last one year and the booze business still brings in Rs.56-58 crore per day—the focus of the Tasmac debate centred on the law and order disturbances caused by the public protests, particularly by women. Criticism by opposition parties and the embarrassing media reporting also figured in the Cabinet session, sources said.

They said several suggestions popped up from the ministers on how to prevent damage to Tasmac property during the agitations and on handling the protesters without attracting charges of police high-handedness. Some blamed the opposition parties for the anti-Tasmac protests.

The government did not come out with any formal statement on the Cabinet deliberations.