Chennai: A high level committee headed by former RBI Governor Dr C Rangarajan, which was formed by the Tamilnadu government to bring the State’s economy back on the growth trajectory post Covid-19 pandemic and lockdown, will have its first meeting tomorrow.
According to sources, during the meeting Thursday morning in the Chennai, preliminary discussions will be held and plans will be devised to prepare the roadmap to bring Tamilnadu’s economy back on track.
Last week, a Government Order (GO) issued by Chief Secretary K Shanmugam said Dr Rangarajan, who is also the former Chairman of PM’s Economic Advisory Council and currently Chairman of Madras School of Economics (MSE), would be the Chairman of the Committee which would have 23 others, including those from Industry, as members.
The Committee would submit its final report to the government within three months time and also submit interim report as it may deem fit as required by the government.
The Terms of Reference of the Committee included, assessing the overall immediate and medium term impact of the COVID-19 pandemic on different sectors of Tamilnadu’s economy, including the impact of the lockdown, additional costs and implications due to social distancing and other precautionary measures, besides assessing the short and medium term opportunities and threats.
It would also suggest measures required to help important sectors of the economy to overcome the impact of COVID-19 pandemic, identify specific reform measures to be taken by the state government to support and promote the growth of important sectors of the economy, assess the impact of the crisis on state government’s fiscal situation and suggest way forward to improve the fiscal position, including increasing the tax, GDP ratio and diversifying revenue sources and re-prioritizing expenditure, besides the issues to be taken up with the Centre by the State that included fiscal issues and economy promotion measures and identify possible sources of financing and funding for different sectors, including infrastructure projects, small businesses and other enterprises.
It said the Additional Chief Secrtary would be the Co-ordinator of the Committee, which would be treated as First Class Committee for purpose of payment of TA/DA.
The members of the Committee are former Chief Secretary N Narayanan, University of Madras Vice-Chancellor Dr P Duraisamy, Tamilnadu Agricultural University Vice-Chancellor Dr N Kumar, MSE Director Dr K R Shanmugam, Madras Institute of Development Studies Director Prof P G Babu, former Murugappa Group Chairman A Vellayyan, IndiaĀ Cements ViCe-Chairman and MD N Srinivasan, TVS Motors Chairman Venu Srinivasan, Indian Bank MD Ms Padmaja Chunduru, Equitas Bank MD and CEO P N Vasudevan, Public Finance Expert and 14th Finance Commission Member Dr M Govinda Rao, Prof M Suresh Babu of IIT-Madras, UNICEF Chennai Coordinator Pinaki Chakraborty, Finance department AdditionalĀ Chief Secretary (Coordinator), Secretaries of Departments of Industries, Agricuture, Animal Husbandry and Fisheries, Housing and Urban Development, IT, MS & ME, Tourism, HHT & K and Labour and Employment.
The GO said the the government had already constituted a 21-member expert committee headed by the Additional Chief Secretary Finance to consult stakeholders, generate suggestions and to submit a report to the government on the way forward after 20 April and the strategies to take measures in the post lockdown period.
Stating that the lockdown and the social distancing measures to be taken post lockdown to limit the spread of coronavirus were bound to have a medium term impact on the state’s economy, including different sectors like agricuture, industries, services including tourism, construction and real estate, retail trade, among others, it said there would be considerable impact of the crisis on the finances of the Union and the State governments.
Pointing out that the responses by the Centre and the RBI to the crisis would also have macro economic consequences, the GO said it was essential to deliberate and to make recommendations on the policy measures to be undertaken by the state government to bring the economy back to the expected growth trajectory, ensuring thatĀ the needs and requirements of the poor were addressed, the supply of essential commodities was maintained undistubred, while limiting the longer term fiscal deterioration.
Hence the government decided to constitute the High Level Committee of economists, experts and officials to advise the government on medium term policy response, it added.
The Committee would also interact and seek views from industry bodies, trade associations, stakeholders, economic and other experts in India and overseas.
It said during the general discussion on the budget on 20 February, Deputy Chief Minister O Panneerselvam, who also holds the Finance portfolio, had announced that an expert committee would be formed to recommend measures to improve the tax, GSDP ratio of Tamilnadu.
“In the present context where the COVID-19 pandemic has posed much more serious economic and fiscal challenges, the high level committee will examine the fiscal challenges facing the state and the way forward to improve the fiscal position including the tax GSDP ratio as part of the larger brief of suggesting policy measures to improve the economic situation’, the GO said.