Fiscal Deficit Budget not a cause for worry: Karunanidhi

Rejoinder to the opposition parties, the Tamil Nadu Chief Minister Mr M Karunanidhi has said that the fiscal deficit projected in the state Budget for the year 2010-2011 was not a cause for worry.

"The Government has taken a number of steps to check price rise", Mr Karunanidhi said in a statement on Saturday.

Reacting to criticism by the Main Opposition All India Anna Dravida Munnetra Kazhagam and its alliance parties that the Budget had no plans to contain the price rise, Mr Karunanidhi said, the very fact that the government had allocated Rs 3,750 crore for food subsidy was to check price rise.

Besides food subsidy, the government has also allocated Rs 1800 crore for free concrete houses scheme, Rs 1716 crore as subsidy to the State Electricity Board, Rs 1002 crore for noon meal scheme, Rs 924 crore for Integrated Child Development Scheme, Rs 891 crore for free Medical Insurance Scheme, he said.

The Chief Minister also pointed out that the government has set apart Rs 750 crore for free colour television scheme, Rs 500 crore for pregnant women, Rs 360 crore for farm loan waiver, Rs 380 crore for free pass to school students, Rs 300 crore for marriage assistance scheme, Rs 256 crore for free saree dhoti scheme, Rs 250 crore towards state's share for National Rural Employment, Rs 240 crore for crop insurance and Rs 176 crore for farm workers.

All these allocations had been made to ensure that people are not affected by rise in prices of food and other items, he said, adding the government had announced subsidies realising the fact on price rise.

In the state Budget it was clearly said that discerning the rising trend in prices of pulses and cooking oil, the government had been providing essential food items like toor dal, urad dal and palm oil at subsidised prices through fair price shops since May 2007, Mr Karunanidhi said.

Reacting to AIADMK General Secretary J Jayalalithaa's concern over growing fiscal deficit, Mr Karunandihi said fiscal deficit was not a cause for worry as it was well within the limit, fixed by the 13th Finance Commission.

Further, Mr Karunanidhi said the estimated Revenue Deficit of Rs 1024 crore for the year 2009-2010 has risen to Rs 5020 crore mainly because of the implementation of Sixth Pay Commission recommendations for the Government Servants.

On Ms Jayalalithaa's concern that the fiscal deficit had gone up to Rs 16,221 crore, Mr Karunanidhi said the state government has achieved all the targets set by the Centre regarding revenue and fiscal deficit in the last four years.

The fiscal deficit for the year 2010-11 was permissible as per the recommendations of the Finance Commission, he added.

- Asian Tribune -