TN to provide Rs 150 crore rebate for handloom sales

Sources said the present funds crunch in the state was deliberated in detail and also the proposed borrowings for the present fiscal. As per the estimates, the government plans to borrow a net amount of Rs 43,962 crore which will be well within the net borrowing ceiling of Rs 47,888 crore for the fiscal 2018 – 2019.

“Even as the fiscal deficit to GSDP ration was estimated to remain at 2.79 per cent, the implementation of Seventh Pay Commission recommendations has resulted in an additional commitment of Rs 14,719 crore per annum in salaries and pensions. As it has burdened the state’s finance, it would keep the fiscal deficit to GSDP ration at 2.76 per cent in 2019-2020 and 2.57 per cent in 2020 – 2021,” sources added.

Terms of Reference (ToR) of the Fifteenth Finance Commission also came up. The CM has insisted that the state’s stand is firm in opposing the present ToR decision.

Palaniswami reviewed the planning, development, and special initiatives, and Handlooms, Handicrafts, Textiles and Khadi departments as well. The new Handloom Support Programme was brought up for discussion and as much as, Rs 40 crore will be provided for it. Sources said the budgetary allocation for the rebate on the sale of handloom cloth will be increased to Rs 150 crore from Rs 80 crore.

“The state would allocate as much as Rs 1,240.72 crore towards Handlooms and Textiles sectors while earmarking Rs 227.46 crore for Handicrafts and Khadi sectors in the fiscal 2018-2019. It would also continue the Market Development Assistance scheme for promoting Khadi cloth produced by Sarvodaya Sangams and Rs 30 crore would be allocated for that,” an official said.