Hype aside, Jaya seeks to balance growth with human development

If her Vision-2023 announced last week was Tamil Nadu Chief Minister Jayalalithaa’s ten-year perspective to make the state the best in India, the state budget for 2012-13 unveiled yesterday rolls out its growth and human development trajectory. Drawing hugely from the vision document, the budget has provided considerable emphasis on infrastructure development and investment without losing sight of welfare and social protection. In other words, her attempt is to put economic growth on an even keel with human development. As in the Vision document, the budget also has hyperboles and ambitious targets; however they are reasonably well matched by appropriate allocations and policy thrusts. [caption id=“attachment_257372” align=“alignleft” width=“380” caption=“Jayalalithaa, state Finance Minister O Panneerselvam arrive to present the state budget on Monday. Firstpost”]  [/caption] That Jayalalithaa wants to benchmark the state against the best in Asia, although a bit hyperbolic, is vivid in the budget document. Therefore, substantial focus is on infrastructure development, with Jayalalithaa herself to head a Tamil Nadu Infrastructure Development Board that will undertake construction of roads, mass transport corridors and other investment-friendly facilities facilities. At the same time, about Rs. 30,300 crore of the Rs. 100,000 crore plus budget has been set aside for social welfare schemes with considerable focus on health, agriculture, education, housing and social protection. Noteworthy is the focus on women and children. The budget has made an initial allocation of Rs. 1,000 crore for the Infrastructure Board. The finance minister’s budget speech reiterated what the chief minister highlighted in her Vision-2023: Tamil Nadu will be among the top three investment destinations in Asia and the most attractive destinations in India in ten years. The minister also said plans for Rs. 20,000 crore investment in the state during the next financial year were in an advanced state. The companies included Yamaha, Eicher, Danfoss, Enfield, Philips Carbon, Sundaram Clayton, TI Group, Saint Gobain, Sanmina-SCI and Nokia. The outlay of Rs. 3,800 for the agricultural sector is the highest in Tamil Nadu so far and it is dovetailed with a higher grain production target of 120 lakh tonnes.  About Rs. 4,000 crores will be disbursed through the cooperative sector as agricultural loans, which will attract no interest if repaid on time. In addition, raising the coverage of insurance to 10 lakh farmers from eight lakhs, establishment of an agricultural intelligence unit in Tiruchi ,etc are progressive steps aimed at modernising the sector and maximising outputs while protecting the interests of the farmers. The accent on human development is visible in the healthcare sector as well - it will receive Rs. 5,569.28 crores. The budget emphasises the state’s commitment to continuous progress on infant and maternal mortality reduction and health of women and girls. For instance, the unique scheme of distributing free sanitary napkins will cover 41 lakh adolescent school girls. In terms of health infrastructure, operation theatres in district medical college hospitals and advanced diagnostics at medical colleges through public-private partnership model and two more regional cancer centres are among the highlights. The fiscal deficit of the (surplus) budget will remain high at Rs. 19,832 crores (2.87 % of the state’s GDP). The total debt of the state at the end of 2012-13 will be Rs. 135, 060 crore or 19 per cent of the state GDP. In an effort to reduce the cumulative debts, the state will reduce borrowing.