The Tamil Nadu government’s financial burden may go up by an additional Rs 50,000 crore per annum if the freebies in AIADMK’s manifesto are to be implemented.
According to the state finance department, the salary and pension expenditure is likely to go up by Rs 15,000 crore per year as and when the government decides to bring in a pay parity with central government employees. All parties have promised this in their manifestos.
The waiver of farm loans and providing interest free loans to farmers for the next five years will also be a big drain on the exchequer, which is said to cost Rs 9,000 crore in the first year. Similarly, free power up to 100 units for domestic consumers will cost Tangedco around Rs 1,690 crore annually . The manifesto promises to continue the green house scheme for the rural poor and laptops for students.
In the coming years, Tamil Nadu will also have to implement goods and service tax (GST). Being a manufacturing state, the tax revenue is likely to come down in the initial years. This will be an additional burden on the state’s finances.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)