the white paper presented by the finance minister of Tamil nadu

 

The white paper presented by the Finance n minister of Tamil nadu conveyed effectively the enormous task faced by the present government in fiscal management due to the heavy burden of debt incurred by the previous government. Fiscal management is going to be tough for this government. It is because the government can do  this usually  by increasing taxes, reducing public spending, and cutting public-sector pay or job. All these measures would make the new government unpopular. People are already suffering under inflation induced by fuel prices and higher indirect taxes and loss of income due to Corona virus  . Hence. increasing transport charges, electricity charges etc., cannot be a wise move. Cutting down on subsidies would affect the welfare of the poor. But the free bees distribution should be rationalized. The government should concentrate more on “Extravagant expenditures”, incurred by the state. Centre has directed all its Ministries and Departments to cut ‘wasteful expenditure’ by at least 20 %. It can be followed  by the Tamil Nadu government also.  Attention is needed to cut down” excessive expenditures" i It refers to expenses incurred at an immoderate quantity and exorbitant price. Moreover, expenditure which was made in vain and would have been avoided should be given up totally .These measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the Government.