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Chapter 3 FISCAL REFORMS FOR POVERTY ALLEVIATION Musgrave (1999) lists “Relief of Poverty” as an important “Fiscal Task” in a listing of Fiscal Tasks for a modern economy. He observes: “… There is a wide agreement that a safety net is called for and that some minimum should hold. The problem is how to provide it efficiently. The best solution is preventive, for example, education, a buoyant labour market, and adequate child care facilities. But direct support is needed as well”. The rationale for fiscal intervention for reducing poverty and augmenting Millennium Development Goals (MDGs) derives directly from the impact that fiscal policies can have on poverty reduction and the relevant MDG targets through subsidies and incometransfer policies as well as the public provision of merits services like health and education. In addition, there is the indirect impact of fiscal policies on growth and income redistribution. In this Chapter, we provide an overview of the state finances of Tamil Nadu and the changes needed to accelerate poverty reduction and strengthen human development for faster achievement of the MDGs. 3.1 Fiscal Policies and MDGs: Some Basic Considerations Fiscal processes affect poverty levels both indirectly and directly: indirectly, through their impact on growth and inflation, and directly through public provision of public goods (administration, law, and justice) and merit services (health and education), private goods (like water supply and sanitation) often at subsidised prices, and specific poverty alleviation programmes. In this context, the quality of access of the poor to public goods like law and order, justice, and administration is quite important. Such access often requires that private costs be incurred. From a public choice perspective also, redistribution of incomes generally towards backward classes and, particularly towards the poor, is expected because the backward classes and the poor have a larger share in the total votes than their share in income. Many of the under-privileged sections of the society, with a high incidence of poverty in their respective classes, have mandated political representations like those arising from reserved constituencies for scheduled castes and scheduled tribes in India, which can be used to support redistributive policies in favour of the poor. In India, all three tiers of the government, namely, central, state, and local have significant MDGs based poverty alleviation programmes. The central and the state governments sponsor a variety of programmes and schemes aimed at these objectives. 49

World Comparative Economic And Social Data
Police Stations - 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