TN Finance Minister urges Nabard for higher allocation of funds next year

Published Date: December 14, 2021


Tamil Nadu Finance Minister Palanivel Thiaga Rajan on Tuesday urged Nabard for higher allocation of funds next year considering that the State is in a growing phase, and is coming out from the impact of the Covid-19 pandemic. Nabard’s financial support for Tamil Nadu in 2019-20 was ₹14,458 crore; in 2020-21 it increased substantially to ₹27,135 crore; in 2021-22 it is expected to be around ₹40,000 crore and in 2022-23 the target is ₹50,000 crore.

Rajan observed that while there was about 100 per cent increase in fund allocation between 2019 and 2021, between 2021 and 2022 it was only a 50 per cent increase and for next year the increase is only 25 per cent. “I would urge you (Nabard) to reconsider, and if you can, allocate a bit more. This is taking in to consideration the State’s economy, which is growing, and also being in the recovery stage after the pandemic and that every sector has been seriously impacted,” he said addressing at the State credit seminar organised by Nabard in Chennai.

The minister said the need of the hour is for banks to do a lot of granular, micro, and focussed lending to individuals, farmers, small and micro business owners. This has to be done with the help of the State cooperative banks, which have such a wide spread that no banks can emulate that reach. For this, a lot of data (real time) and execution at the grass root level is critical, Rajan said. The State government has laid a lot of focus on providing data driven governance, which would bring in transparency in administration and better connectivity with all the departments in execution on the ground, he added.

At the event, the minister also released Nabard’s State Focus Paper 2022-23. The paper is produced annually to serve as a reference document for preparation of Annual Credit Plan by bankers and also for State government departments to plan for infrastructure linkages and a support system for optimum off-take of credit.

The minister also gave away awards for the best performing banks under SHG-Bank Linkage Programme and Financial Inclusion.

Media: The Hindu Business Line