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Fiscal challenges for the new TN government The fisc Under pressure - Bloomberg× The State will need to work towards bringing down its debt level in the coming years The new Tamil Nadu government that will take charge after the elections will have certain impending challenges with the financial management to deal with. While the State has adhered to key targets under its Fiscal Responsibility Legislation on fiscal deficit (3 per cent of GSDP) and outstanding liabilities levels (25 per cent of GSDP) in the recent years (between 2011-12 and 2018-19), some of the other indicators show a deterioration. Due to the economic slowdown in 2019-20, the finances of many States saw a deterioration. Tamil Nadu’s fiscal deficit was 3.24 per cent in 2019-20, higher than the 3-per-cent limit. ....
As neighbouring states like Kerala and four other states witness a spike in the number of new Covid-19 cases, the Tamil Nadu government has intensified surveillance in districts bordering Kerala. The government has also decided to make it mandatory for all returnees to by flight to compulsorily undergo the RT-PCR test. While trying to bring down the number of active cases in the state, the state health department is continuing to aggressively test for the virus and tracing its contacts, informed Health Secretary Dr J Radhakrishnan. Expressing concern over non-compliance by people, including those who gather for political rallies, he appealed to the people not to lower the guard as five states in India have recorded an increase in cases. ....