TN pegs economic growth in excess of 5 pc in FY'14

The Tamil Nadu government today pegged the state's economic growth in excess of five per cent and foodgrain production to cross 100 lakh tonnes in 2013-14.
In his customary address to the Tamil Nadu Assembly in its first session for this calendar year, Governor K Rosaiah said the government was determined in reviving the economy even as he blamed the Centre for its "faulty macro-economic" policies.
The 'severe drought' in 2012-13 had affected agricultural production, but the government had managed to overcome the "calamity" of crop failure with Chief Minister Jayalalithaa announcing Rs 1614 crore relief package,he said.
"This apart, the global economic downtrend and the resultant domestic slowdown, which was also fuelled by the faulty macro-economic policies of the Central government, have affected growth in Tamil Nadu. This government, on its part, is trying hard to reverse this trend," he said.

The economic slowdown, rising inflation, falling growth and instability in exchange rates had affected Tamil Nadu, which was a "manufacturing and exporting state."
"Against this tide, this government is determined to revive the economy and improve the general economic environment. Though growth in 2012-13 was only 4.14 per cent, we expect growth to revive and comfortably exceed 5 per cent during 2013-14," he said.

There was a revival in industrial and agricultural production which would result in a 'rebound' in the service sector growth and to give a fillip to the economy, the state government had increased the plan expenditure target for the year 2013-14 to Rs 37,128 crore, he said.

"For the year 2014-15, the Plan size would be further increased to a level of Rs 42,185 crore," he added.
On the primary sector, he said government laid special emphasis on improving production and productivity of agricultural crops by adopting high-end technologies besides using innovative approaches in cultivation of high value crops, including fruits and vegetables.
"Though the state has faced a shortfall of 33 per cent in the North-East Monsoon rains, the foodgrain production is expected to surpass 100 lakh tonnes during 2013-2014," he said.
Reiterating ruling AIADMK's opposition to the UPA's Food Security Act, the Governor said Tamil Nadu was the only state to implement a Universal PDS, benefiting 1.86 crore families which included among others free rice.

"An amount of Rs 4,900 crore has been allocated as food subsidy during 2013-14.This government is of the view that the National Food Security Act enacted by the Government of India will not achieve the goal of food security effectively," he said.
Though the Centre modified the draft bill to protect current level of offtake of foodgrains under PDS due to Jayalalithaa's "persistent efforts", he Act still had "several shortcomings", he said.