The Tamil Nadu government on Monday named Nobel laureate Esther Duflo and former Reserve Bank of India Governor Raghuram Rajan as part of a five-member Tamil Nadu Chief Minister MK Stalin’s economic advisory council.
The other members in the council are former Chief Economic Adviser Arvind Subramanian, development economist Jean Drèze and former Union Finance Secretary S Narayan.
The advisory council is being formed to guide Tamil Nadu Chief Minister MK Stalin to chart out inclusive economic growth for the state managing the state’s economic and social policies.
Establishment of the new council comes days after Chief Minister Stalin met Prime Minister Narendra Modi in Delhi.
In his ceremonial address during the first session of the 16th state legislative assembly in Chennai on Monday, Governor Banwarilal Purohit said the newly-elected Tamil Nadu state government will constitute an economic advisory council to the chief minister with leading economic experts from all over the world as its members.
Governor announced the council while addressing the state Assembly at its first sitting since the Dravida Munnetra Kazhagam-led government assumed power.
Purohit said based on the recommendations of this council, the government will revitalise the state’s economy and ensure that the benefits of economic growth reach all segments of society. He said the government will focus on improving the fiscal position and bringing down the debt burden. A white paper detailing the true state of Tamil Nadu’s finances will be released in July.
Purohit said the economic advisory committee and other groups will study the financial situation of the state and changes will be made accordingly to make the state’s economy stronger. Purohit concluded his speech by saying DMK-led government will be a people’s government and not the party’s.
This will be the first step towards bringing down the overall debt burden and improving the fiscal position, the governor said. The state government said the council will meet in person, or virtually, to fulfill its responsibilities and will decide its own operational modalities to achieve its objectives.
In its notification, the state had said that the fiscal situation of Tamil Nadu is precarious with persistent high revenue and fiscal deficits and a large overhang of debt. At the same time, expectations of people are very high that the government will deliver on faster economic growth, social justice and equality in the state.
The state government has a Rs 5 lakh crore debt and interest payment for this is a huge challenge, particularly amid the pandemic.
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Ahead of the April election the DMK had promised a cut in fuel prices, a monthly allowance of Rs 1,000 for housewives and waiver of student educational loans, none of which were mentioned by the Governor in his address.