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7 months ago

POVERTY REDUCTION STRATEGY TN

In relation to other

In relation to other millennium development goals (MDGs), some notable features are: a. The infant mortality rate was 15 in Tamil Nadu compared to 77 for All-India in rural areas and 22 for Tamil Nadu compared to 45 for all-India in urban areas. b. In the context of enrolment, the retention rate in classees 1-8 as percentage of class 1 intake is 63.2 for Tamil Nadu, compared to 36.3 for all-India. c. In terms of gender disparities also, Tamil Nadu’s performance is comparatively better. The gender ratio was 98.6 in 2001 and the female literacy rate was 63.4. d. The incidence of HIV/Aids is disturbing with total number of reported cases more than fifty thousand, which are differentially distributed across districts, with Chennai alone having nearly one-fifth of the total reported cases. e. With growing urbanization, a major concern would be providing safe drinking water in urban areas with high density of population so that water-borne and related diseases could be kept at a minimum. In Tamil Nadu, water scarcity and land degradation are two major constraints that affect agriculture in the state, which impact the poor more than others. The recently published State’s Eleventh Plan has laid emphasis on coping with the agricultural crisis in the context of its impact on employment and poverty and has taken note of the interdistrict disparities in the development indicators. An effective poverty reduction strategy would need to be dovetailed to the on-going macro and structural changes, which will provide economies of scale in reaching the MDGs. For the remaining, specially designed polices will provide comprehensive coverage of the population facilitating reaching the MDGs in the stipulated time, enabling Tamil Nadu to become one of the front-runners among Indian States in attaining the MDGs. b. Economic Growth and Poverty Reduction Growth is one of the strongest antidotes to poverty. The pattern of ownership of assets and redistribution policies can strengthen the poverty reducing impact of growth by correcting market failures specially the imperfections of the credit and insurance markets. The sectoral composition of growth is also critical. In Tamil Nadu, as in India as a whole, the structure of the economy is shifting away from agriculture. For people remaining in agriculture, the real growth rate is likely to remain relatively low compared to the other sectors. Agricultural prices also tend to be volatile. These trends will lead to further migration of people away from agriculture to non-agricultural activities, and away from rural to urban areas. Growth in employment in the primary sector in Tamil Nadu has been negative in recent years whereas that in secondary and tertiary sector has been 160

positive and relatively high. The basic challenge in the context of the changing structure of the economy and employment is to create the capacity to absorb the population migrating out of agriculture into industry and services with proper training and skill development. At the same time, productivity in agriculture should not be allowed to fall. This will require considerable additional investment in agriculture where government will have to play a key role as the returns will not be adequate to attract large inflows of private capital into agriculture. Higher growth, particularly in the non-agricultural sectors, has been shown to have a significant direct impact on reducing poverty in Tamil Nadu. c. Fiscal Reforms for Poverty Reduction Fiscal reforms and restructuring can strengthen growth and MDGs-based poverty reduction can be achieved by emphasizing human development. These changes are interdependent as expenditure on education and health accommodates absorption of labour in the non-agricultural sectors. This strengthens the growth momentum, generating additional revenues for the government for undertaking the required expenditures on health and education while continuing to meet the Fiscal Reforms and Budget Management (FRBM) targets. Further, fiscal space is created for undertaking additional investment in infrastructure. Tamil Nadu has been able to achieve its medium term fiscal responsibility targets. By 2008-09, it has already achieved a less than 3 percent fiscal deficit level relative to GSDP and a surplus on its revenue account. The ratio of outstanding liabilities relative to GSDP is about 22-23 percent and its interest payment liabilities also compare favourably with many other states. We have drawn up a fiscal restructuring plan for the period up to 2014-15 highlighting the scope for creating additional fiscal space for augmenting capital expenditure as well as expenditure on health and education relative to GSDP within the framework of the FRBMA. There is scope for increasing expenditure on water supply and sanitation, and on irrigation from the increased fiscal capacity. The following are the main features of the proposed fiscal restructuring. 1. The FRBM targets of maintaining surplus on revenue account and keeping fiscal deficit at 3 percent of GSDP has to be adhered to throughout the period up to 2014- 15. However, it is not necessary to over achieve the fiscal deficit target excessively by bringing it down much below 3 percent of GSDP. 2. Keeping fiscal deficit at 3 percent of GSDP with some revenue account surplus, capital expenditure can be increased reasonably above 3 percent of GSDP. It is 161

World Comparative Economic And Social Data
Police Stations - Tamil Nadu Police
Nammakal - Tamil Nadu Police
N u m b e r o f S c h o o l s - DISE
Census 2011 population of Latur district
PDF: 1.0MB - Population Reference Bureau