Tamil Nadu Finance Minister Palanivel Thiaga Rajan said on Wednesday that the State is well-equipped to deal with any global financial downturn in the future. If there is no such downturn, the public expenditure as a percentage of the State GDP will keep increasing and the fiscal deficit will keep decreasing, he said.

He told the Assembly that the fiscal deficit was reduced to 3.38%, compared with 4.61% last year, and Tamil Nadu had improved its ability to seek loans by staying within the fiscal deficit limit prescribed by the Union government.

“The State’s capacity to take loans has increased in the event that there is a global economic slowdown. We have also reduced the interest payable by ₹1,240 crore,” he said.

“If there is no global economic downturn, every year the public expenditure as a percentage of the State GDP will keep going up and the fiscal deficit will keep going down. However, if there is a global economic downturn, due to the precautionary steps taken by the State, the effect on Tamil Nadu will be lesser than on the other States and the Union government,” he contended.

Several Bills were passed in the Assembly. Among them were The Tamil Nadu District Municipalities (Amendment) Bill, 2022, moved by Minister for Municipal Administration K.N. Nehru; The Tamil Nadu Universities Laws (Second Amendment) Bill, 2022; The Tamil Nadu Universities Laws (Third Amendment) Bill, 2022; and The Tamil Nadu Private Colleges (Regulation) Amendment Bill, 2022, moved by Minister for Higher Education K. Ponmudy. The House also passed The Tamil Nadu Business Facilitation (Amendment) Bill, 2022; The Tamil University (Second Amendment) Bill, 2022, moved by Minister for Industries Thangam Thennarasu; The Tamil Nadu Transparency in Tenders (Amendment) Bill, 2022; and The Tamil Nadu Appropriation (No. 6) Bill, 2022, moved by Mr. Thiaga Rajan.

The other Bills that went through the House were The Tamil Nadu Co-operative Societies (Fifth Amendment) Bill, 2022, moved by Minister for Cooperation I. Periyasamy; The Tamil Nadu Prohibition (Amendment) Bill, 2022; and The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Tamil Nadu Amendment Bill, 2022, moved by Minister for Health and Family Welfare Ma. Subramanian.