You have come from the Industries Department to the Finance Department. How has your journey started in the new assignment?
We had made a great start to the preparations for the 2024 Global Investors Meet. All our previous meetings with companies around the world have started bearing fruit. And you can see the flow of investment into Tamil Nadu.
Is it true that you were reluctant to take up the post of Finance Minister?
not actually; I was not reluctant. I was reluctant that’s far from the truth. I am happy and thankful to the Chief Minister for choosing me for this portfolio as it means a huge responsibility. And now I have to discharge my duties living up to the expectations of the Chief Minister. Of course, finance is definitely new to me, but my experience in the Department of Industry and other departments will help me in my new role.
T Udayachandran, who was serving as Principal Secretary to the Chief Minister, has been transferred as Principal Secretary in the Finance Department. Was this done at your request?
During the Hyundai MoU program last week, the Chief Minister had clearly said that the cabinet reshuffle has been done due to administrative reasons. Similarly the IAS officers were changed.
What are your priorities as Finance Minister?
We will continue to work to improve the state’s finances and ensure that the state is in a financially sound position. While implementing welfare schemes like universal basic income, breakfast for school children and scholarships for girl students, we will increase infrastructure spending. We will support sectors like road and transport, metro rail and water supply. For example, Chennai Metro Rail Phase II is under implementation. We expect an annual expenditure of around ₹10,000 crore for the next few years. The expenditure on infrastructure should be at least double what it is. We will try to streamline revenue expenditure to make more room for capital expenditure. Also we need investment from the private sector. Preference will be given to Public-Private Partnership projects. As announced in the budget session of the Vidhan Sabha, we are drafting a public-private partnership policy that will guide government agencies and encourage investors to participate in these projects.
How do you intend to take forward the state’s ambition of becoming a $1 trillion economy by 2030?
I will closely monitor and develop the road map for the goal. My focus will be on an actionable plan with key policy interventions, investment priorities and sector-specific plans. Boston Consulting Group is conducting the study, which should be ready by the end of the year.
How do you want to integrate technology into your department?
Integrated Financial and Human Resource Management System (IFHRMS) has been implemented across the state, and many issues have been resolved. However, the system needs an upgrade. We will be implementing a major tech refresh, and I’m targeting the end of this calendar year to complete the upgrade. Data analysis is an important tool. The huge data that we receive through the system will be analyzed with a robust Business Intelligence tool. I have tasked my officers to prepare a dashboard to update data on the state’s finances and human resources on a real-time basis. I hope to complete it in three months.
What is the update on the recommendations of the Sixth State Finance Commission?
The commission has recommended major systemic reforms which require close monitoring. These include simplifying the mechanism for release of funds to local bodies, streamlining audit of their accounts and strengthening their capacity with technology solutions. I will periodically review the implementation of the cabinet decisions by all agencies.
The DMK had promised in its assembly election manifesto that it would restore the old pension scheme for state government employees. Will you be able to honor the promise considering its financial implications?
Our Chief Minister is more concerned about the welfare of the employees. Earlier this week, the dearness allowance for government employees and pensioners was increased from 38% to 42%. The Government of India has constituted a committee regarding the old pension scheme. Various associations have given a representation to the government, which will take a call at the appropriate time.
The Chief Minister has ensured that the Archaeological Department is with you. you must be happy…
Archeology is my passion. A lot of work needs to be done and I am happy to have a portfolio. We have taken up important projects and a lot of excavation is going on. A major project is the Porunai Museum in Tirunelveli. The other is the Chola Museum in Thanjavur. We are looking at more excavations and protection of monuments. underwater exploration underway [at Korkai] And we need to give more importance to it. The department needs to be strengthened with more manpower and right people. People have been very interested in archaeology.