On Saturday the Tamil Nadu government set up a high-level committee which was headed by former Reserve Bank of India (RBI) governor C Rangarajan in order to examine fiscal challenges faced by the state due to the coronavirus pandemic.
The committee consisted of 21 members including Finance Secretary S Krishnan, A Vellayan, former Murugappa Group chairman, N Srinivasan, vice-chairman and MD of India Cements, Venu Srinivasan, TVS Motors chairman, Padmaja Chunduru, managing director of Indian Bank, P N Vasudevan, managing director and CEO of Equitas Bank, and other bureaucrats and academician. They would assess the overall immediate and medium-term impact of the COVID-19 pandemic on different sectors of the state’s economy.
They will also assess the opportunities and threats in the short and medium-term and will suggest measures to overcome the impact of the coronavirus pandemic.
Apart from assessing and suggesting the precautionary measures the committee would assess the impact of the coronavirus pandemic on the state government’s fiscal situation and will suggest measures to improve the fiscal position which includes increasing the tax, GDP ratio, and diversifying revenue sources and reprioritizing expenditure.
The committee will also recommend the economy protection measures the state should take up with the Central government for necessary action and possible sources of financing and funding for different sectors like infrastructure projects, small businesses, and other enterprises.
According to a Government Order, the committee is expected to submit its report to the government within 3 months.
Moreover, on February 20, 2020, O Paneerselvam, the Deputy Chief Minister announced that an expert committee would be constituted to improve the tax and GSDP ratio of the state Tamil Nadu.