Connect with us
Thursday,09-October-2025
Breaking News

Business

‘TN govt may get into reform mode after local body polls’

Published

on

Palanivel-Thiaga-Rajan

The DMK-led Tamil Nadu government may get into reform mode post the local body elections likely to be held by the end of 2021, say party leaders and industry experts.

“Though a white paper on the Tamil Nadu government finances spoke about the necessity to hike tax rates and other things for those who can bear it, the state budget that was presented was a usual one. Perhaps the state government may get into reform mode after the local body elections,” K.C. Palanisamy, former AIADMK MP and MLA, told IANS.

Palanisamy said the local body elections may be held before the end of 2021 or February 2022.

Finance Minister Palanivel Thiaga Rajan after declaring ‘once in a generation reforms a must’ and ‘business as usual’ approach cannot continue while presenting the white paper on the state government’s finances, came out with a relatively populist budget.

As per the white paper, reforms/restructuring in state government undertakings, statutory boards, power utilities, mobilisation of tax revenues, mode of subsidy deliveries were on the cards.

“As a debutant Finance Minister, he might have taken a soft approach with his first budget which is an interim budget,” Palanisamy said.

Industry experts said Finance Minister Rajan’s budget is nothing but a status quo or an extension of the previous AIADMK government’s budget.

“The white paper set the expectation that the Finance Minister will provide a reform budget to reduce the state debt. One could agree that he needed more time to come up with the actual reforms but least expected was the transformation roadmap, a timeline,” Sriram Seshadri, Founder and Managing Partner, Disha Consulting and formerly Partner and Managing Director, Accenture India, told IANS.

According to him, a white paper lays down the problem, analysis, probable solution.

On the other hand, the government’s white paper laid out the problem statement which was well known and the expectations were there on reform proposals in the budget which surprisingly did not happen, Seshadri said.

“As an economist, I feel satisfied that the budget didn’t provide for any of the poll promises. For an economist the white paper gave an expectation that there would be a reform and transformation roadmap but the budget was disappointing,” he added.

According to him, nothing was there in the budget for beefing up the state revenues while the debt was increasing.

“Tamil Nadu will cross the debt of Rs six lakh crore mark by 2021 end. Only solace is during the budget discussions in the state Assembly, the Finance Minister has said some of the poll promises will not be met such as revising the old pension scheme for government employees,” Seshadri added.

He said if there is a reform agenda with the DMK government it has to be rolled out soon and not wait for the next year’s budget.

However, he agreed that the government will take some reform steps mainly targeted subsidies to poor sections of the society, refine the rules for ration cards and revenue optimisation initiatives like tax reforms.

“Already Tamil Nadu’s economy is the fourth largest in the country and will slip to fifth or sixth place soon. Hence, the state should regain the momentum, cut the red tape and enable ease of doing business both in MSME and large industries,” Seshadri said.

While the government’s popularity endures it should take some tough decisions to reduce government spending, disinvestment and make announcements to attract investment, he said.

“Sterlite Copper (copper smelter unit of Vedanta Ltd in Tuticorin) closure is one of the stumbling blocks for investors to invest in a big way because there is no guarantee to their investment. The government should enable reopening of Sterlite within the guidelines of the pollution control norms. Likewise closely monitor to optimize revenue on the natural resources, mining and sand. The government gets less than Rs 1,000 crore revenue whereas the potential is much higher,” he added.

However, the signs of change in the government are seen in the budget by not implementing its populist poll promises like Rs 1,000 per month dole to the female head of the family.

“Instead the government had decided to conduct a study to identify eligible beneficiaries. This move is new as in the past the state government used to disburse financial assistance for almost all ration card holders,” K. Puhazhendi, Director, Perfint Healthcare, told IANS.

Referring to Rajan’s statement that the governance will be data-based, Puhazhendi said the government can mine data available in its own departments/municipal corporations.

The smart ration cards are linked with Aadhar cards.

Puhazendhi said the government employees themselves form a big database so that undeserved subsidies can be stopped.

“Data on property taxpayers, land owners, vehicle registrations, power consumers, ration card holders, data about government employees, shops and business establishments, factories and other data are available with different departments,” Puhazhendi said.

The government can collate and gather from the people with help of door-to-door data gathering. This could be a starting point to build a database and target the subsidies and other government schemes, he added.

Stressing that the government’s focus should be on making each department, municipal corporations self-financing, Puhazhendi called for a freeze on government hiring and investment should be made in information technology systems to digitise the services.

It is high time the state government goes in for public-private partnership in the tourism sector. The state government owns several hotel properties which are in need of private investment and management.

Business

World Bank flags rising poverty levels in Pakistan

Published

on

New Delhi, Oct 8: The World Bank has expressed serious concern over Pakistan’s economy as the country has failed to reduce poverty despite massive loans injected by the IMF.

The current model of growth has failed to ameliorate the conditions of the poor, and the headcount ratio (HCR) has surged to its highest level of 25.3 per cent in the last eight years, which is a 7 per cent increase in HCR since 2023, the World Bank report states.

Instead of concentrating on rural development to reduce poverty, the Pakistan government has been focused more on increasing defence expenditure.

The World Bank report titled “Reclaiming Momentum Towards Prosperity: Pakistan’s Poverty, Equity and Resilience Assessment” released on September 23, mentions that even the country’s aspiring middle class (constituting 42.7 per cent of its population) is “struggling to achieve full economic security”.

Pakistan’s once-promising poverty reduction trajectory has come to a troubling halt, reversing years of hard-fought gains.

After dramatically reducing poverty from 64.3 per cent in 2001 to 21.9 per cent in 2018 — declining by 3 percentage points annually until 2015 before slowing to less than 1 percentage point per year — recent compounding shocks have pushed poverty rates back up to a projected 25.3 per cent by 2023-24, the report states.

The economic model that delivered early wins has reached its limits, with 14 per cent of the population in 2018 remaining vulnerable to falling back into poverty when faced with shocks.

Compounding crises — Covid-19, economic instability, devastating floods, and record-high inflation—have further exposed systemic weaknesses, leaving many in low-productivity activities and unable to cope with these challenges, the report points out.

Bold policy reforms are now essential to address structural imbalances, prevent sliding back into poverty during shocks, and tackle the persistent challenges in remote areas. In this context, this Poverty, Equity, and Resilience Assessment , the first since the early 2000s, looks at how poverty has evolved in Pakistan by combining traditional and non-traditional data, offering detailed analysis and strategic direction on the country’s efforts and challenges to reduce poverty and promote equity.

This comprehensive assessment aims to provide a roadmap for policymakers and stakeholders to address poverty and equity challenges in Pakistan effectively, the report added.

Continue Reading

Business

Securing India’s cyberspace a shared responsibility: Centre

Published

on

New Delhi, Oct 8: As cybersecurity incidents doubled in 2 years from 10.29 lakh in 2022 to 22.68 lakh in 2024, the Centre said on Wednesday that securing India’s cyberspace is a shared responsibility where the government and citizens must work together to combat cyber fraud.

Over 1,05,796 police officers are now registered on the CyTrain portal, with more than 82,704 certificates issued, equipping frontline personnel with essential cybercrime investigation skills, according to an official statement.

With financial support of Rs 132.93 crore from the Centre, cyber forensic-cum-training laboratories have trained over 24,600 personnel in cybercrime investigation, digital forensics, and preventive measures.

Further, as of March 2025, CERT-In facilitated 109 cybersecurity mock drills, engaging 1,438 organisations from different states and sectors to assess cyber readiness and build resilience, the government said

India’s digital expansion has connected over 86 per cent of households to the internet, increasing the risk of cyber fraud. Advanced forensics, big data analytics, and indigenous tools have bolstered national cyber resilience, the release said.

As India celebrates its rapid 5G rollout, with 1.2 billion mobile subscribers and 970 million internet users, the focus on secure, inclusive, and scalable digital ecosystems reinforces the country’s position as a global hub for trusted and transformative digital infrastructure, the release said.

The government cited evolving threats, including spoofing, phishing, and AI-driven deepfakes, where individuals are lured into revealing sensitive information through deceptive emails or messages, which are also on the rise.

As UPI was targeted using compromised mobile numbers, the Department of Telecommunications (DoT) launched the Financial Fraud Risk Indicator (FRI), which classified suspicious numbers as medium, high, or very high risk.

India’s legal framework includes the Information Technology Act and the Digital Personal Data Protection Act, along with operational platforms like CERT-In, NCIIPC, Samanvaya, and the Sahyog portal to combat the rise of cybersecurity threats, the release said.

Further, the National Cyber Crime Reporting Portal has been launched to enable citizens to report complaints relating to various categories of cybercrime, with a special focus on offences targeting women and children. A dedicated cybercrime helpline number, 1930, provides immediate assistance to victims of online financial fraud, the release noted.

Continue Reading

Business

DGCA fines IndiGo Rs 20 lakh for lapses in pilot training

Published

on

New Delhi, Oct 8: The Directorate General of Civil Aviation (DGCA) has imposed a fine of Rs 20 lakh on IndiGo for alleged lapses in pilot training at Category C aerodromes, airline’s parent company, InterGlobe Aviation, informed the stock exchanges on Wednesday.

According to the company’s filing, IndiGo received the communication from the aviation regulator on September 26.

The DGCA said the violation was related to the airline’s failure to use qualified simulators for pilot training, which is mandatory under aviation safety rules.

“Details of violation(s)/contravention(s) committed or alleged to be committed: Alleged failure to use qualified simulators for pilot training at Category C Aerodromes,” the company said in its filing.

In its response, IndiGo said it is contesting the DGCA order before the appellate authority.

The airline added that the penalty will not have any material impact on its finances, operations, or business activities.

“The Company is in the process of contesting this Order before the appropriate appellate authority,” the airline said.

“There is no material impact on financials, operations or other activities of the Company,” the airline added.

The company also explained the delay in disclosure, stating that it was unintentional and happened because of a lag in internal communication regarding the details of the order.

“The delay in disclosure was unintentional and was caused due to a delay in internal communication of details pertaining to the order,” the low-cost carrier mentioned.

The shares of IndiGo closed the intra-day trading session at Rs 5,630.50, down by Rs 33.50 or 0.59 per cent apiece on the National Stock Exchange (NSE).

Meanwhile, earlier this year, a Delhi-bound IndiGo aircraft carrying more than 150 passengers, including Samajwadi Party leader and Lok Sabha member Dimple Yadav, had aborted take-off at Lucknow airport after a technical issue was detected.

According to the official statement, the incident took place on IndiGo flight 6E2111, which was scheduled to depart from Lucknow to Delhi.

Continue Reading

Trending