1. Planned Development in Tamil Nadu – Perspectives andProspects

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1.1. Overview of Tamil Nadu Economy

bghUŸfUé fhy« éidælbdhL IªJ«

ÏUŸÔu v©â¢ braš- FwŸ 675

Money and means, time, place and deedDecide these five and then proceed.

- Thirukkural 675

1.1.1. Introduction

The objective of planning in the country has generally been to reengineer

the process of development in order to achieve higher economic growth and

reduce all forms of inequalities. Tamil Nadu is no exception to this and is one

of the successful states in combining development with social justice.

With the objective of achieving impressive economic growth within the

framework of social justice, Tamil Nadu has been surging ahead steadily and

strongly to become one of the most socially and economically progressive states

in the country. This inclusive development process is the result of the

implementation of a policy of reservation for the backward classes for nearly a

century along with pro-poor public expenditure. The Eleventh Plan attempts

to accelerate the momentum of development in the State and to position the

state in the economic map of the country at the highest position without

sacrificing social justice.

In spite of the significant economic achievements by the state, it is a fact

that the nature and pattern of the growth process in the state has been

somewhat skewed with both spatial and sectoral imbalances. The state, an

agrarian economy at the dawn of independence, is now a modern economy

that is propelled by the secondary and tertiary sectors.

In order to achieve the growth rate proposed in the Eleventh Plan, it is

the agricultural sector, which has to be liberated from the uncertainty due to

its dependency on rainfall and resurrected from the clutches of the factors

afflicting its growth. The Eleventh Five Year Plan of the State has accordingly

been drafted giving the top most priority to the revitalization of the State’s

agrarian sector. The State has recognized that attainment of higher agricultural

growth is the key to increasing income levels and reducing poverty in rural

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areas. The Plan also endorses the philosophy of the state that the breakthrough

in agriculture should come, not from technology alone, but using a strategy

which places the farmer and his welfare at the center of action.

The Eleventh Plan of the state proposes to attain a real growth rate of 9%

per annum, while simultaneously reducing the intra-state disparities in human

development. A look at the major economic indicators shows that the economy

of the state has grown at 5.8% per annum during the last decade with a

population growth of about 0.9% per annum, with the growth of unemployment

rate being 0.30 percentage points (per annum) between 1999-2000 and 2004-

05. The Plan ascribes a crucial role for the state in terms of employment

generation, safeguarding the livelihood of the population and improving the

living conditions in the rural and urban areas of the State. The Plan is also

based on an environmentally sustainable growth strategy. On the whole, it

pays adequate attention not just to the rate of economic growth, but also to a

pattern of the growth that is both equitable and sustainable.

1.1.2. Physical performance during the Tenth Plan

Economic Growth

The Tenth Plan anticipated that the economy (Gross State Domestic

Product) of the State would grow in real terms at the rate of 8% per annum.

However, the performance was only up to the level of 6.8%. The poor

performance was mainly due to the shortfall in primary sector performance

arising largely due to adverse weather conditions and natural calamities.

The performance of the economy in terms of the GSDP during the Ninth and

Tenth plan period is given in Table 1.1. 1.

Table 1.1. 1

Source: Department of Economics & Statistics, Note: The figures in the brackets are the annual growth rates

Performance of the economy (GSDPFC at 1999-2000 Prices)

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The economy had grown at 4.8% of Average Annual Growth Rate (AAGR)

during the Ninth Plan period while it had achieved a 6.8% growth rate during

the Tenth Plan period, with the tertiary sector being the major contributor to

growth, showing an average growth of 7.7%. The primary sector has been

responsible for pulling down the growth at 2.57% per year. The secondary

sector has maintained its growth rate at 7.5%.

Per Capita Income

The state occupies the 8th rank in the country in 2004-05 in terms of the

per capita income. During the Tenth Plan, the per capita income in the state

has grown at 5.7% per annum as compared to 3.5% during the Ninth Plan.

There has been a steady growth in the per capita income as the details in the

following Table 1.1. 2 show.

Table 1.1. 2

Sectoral shares of GSDP

Between 2001-02 and 2006-07, the share of the primary sector in the

Gross State Domestic Product (GSDP) sharply declined from 17.2% to 13.6%;

The contribution of the secondary sector to the GSDP was 27.03% in 2001-

02, the end of the Ninth Plan, which increased slightly to 28.03% in 2006-07.

However, the tertiary sector’s contribution to the GSDP has increased form

55.73% in 2001-02 to 58.3% in 2006-07. A closer look at the shares of the

different sectors during the Tenth Plan period reveals that the share of primary

sector deteriorated at the rate of -4.16% per annum and of the secondary

sector grew at the rate of 0.8% per annum, while that of the tertiary sector

Source: Department of Economics & Statistics

Per Capita Income in Tamil Nadu

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increased its share at the rate of 0.93% per annum. Sectoral shares of the

different sectors are given in the Table 1.1. 3 for the Ninth and Tenth Plan

period.

Table 1.1. 3

The structural change in the state economy is the reflection of the

differences in the growth rates of the major sectors. The following Table 1.1. 4

gives the growth rates of major sectors and sub-sectors of the state economy

achieved during the Ninth and Tenth Plan periods.

Table 1.1. 4

Source: Department of Economics & Statistics Real growth rate calculated with 1999-2000 as base year.

Sectoral Growth Rates during Ninth and Tenth Plan Periods

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Agriculture

Agriculture is the major livelihood support to the rural masses in thiscountry as well as in the state. Though the share of agriculture has beendeclining over the years, its importance and influence on the economy cannotbe understated. It acts as an important instrument not only of the growth ofthe economy but also of the welfare of the people. One of the main reasonsfor the observed unbalanced growth of the economy has been the decline inthe share of and the growth of the agriculture sector. The sector has undergonea crisis during 1993-94 to 2006-07. The Graph 1.1. 1 shows the performanceof the Agriculture sector during the last decade:

Graph 1.1. 1

The Tenth Five Year Plan had set a target of 4% growth rate in theAgriculture and allied sectors with an output of 106.38 Lakh Metric Tonnes(LMT) of food grains per year. The performance in agriculture during the periodfell far short of the target mainly because of the severe drought during theinitial years of the Tenth Plan. The growth of agriculture sector touched thenadir of (-) 21.78 % during 2002-03 recovering marginally to (-) 1.69 % in thenext year 2003-04. Due to good monsoon, the sector surged forward with agrowth rate of 20.46 % in 2004-05. The last two years of the Plan again showed

a decline with the growth rate dipping to 8.93% and 6.14%, largely due to

adverse seasonal conditions.

The Tenth Five Year Plan could not also achieve the target of 106.38 LMT

of food grain production due to the severe drought and flood conditions in the

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state coupled with the havoc wreaked by the tsunami. The average annual

production of food grains during the Tenth Plan (63.78 LMT) was less than

the 85.33 LMT achieved during the Ninth Plan period.

The contribution of the primary sector to the GSDP has been continuously

on the decline from about 24% in 1993-94 to 13.6% in 2006-07. As the decline

in the relative share of agriculture has not resulted in a corresponding reduction

in the proportion of population dependent on agriculture, the crisis in the

sector has resulted in increasing income deprivation for many families especially

the small and marginal farmers and landless labourers. This has further helped

to accentuate the rural urban divide. The value added from agriculture as well

as the growth of the sector has always been very volatile. Though the 20%

growth in the sector during 2004-05 and the highest ever production of food

grains during 2006-07 was 96.04 lakh metric ton, which reveal positive signals,

the crisis is far from over.

Nearly two-third of the population of the state continues to depend on

agriculture. However, the net sown area showed a decline from 45.37% of the

total area during 1993-94 to 39.1% in 2004-05. Increasing urbanization,

aggravated by the severe drought situation in the State, is one of the several

factors for this decline, which has resulted in a competition for resources like

land, labour and water. Further, more than 15% of the area of the State has

come under either current or other fallows.

Tamil Nadu is one of the states having the smallest land holding size. The

average size of holding has declined from 1.25 hectare in 1976-77 to less than

one hectare now. This coupled with the finding of the 59th round of NSS

survey on ‘Indebtedness of Farmer Households’ that the state is the second

highest indebted state in the country, explicates the unique and vulnerable

position of small and marginal farmers in the state.

Industries

Tamil Nadu has recently been one of the most sought after destinationsin the country for foreign investments in view of the favourable industrialpolicies followed by successive governments in the State. This has culminatedin attracting more foreign investments especially in the automobile industry.The growth rate in the secondary sector has also been fluctuating, thoughthere is some improvement observed in the recent years. In the small and

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medium scale sectors, both the registered and unregistered manufacturingindustries face a plethora of problems in the era of globalization and freecompetition. The tiny and village industries, especially those that providehousehold activities like khadi weaving and silk reeling need particularemphasis.

Though the target, during the Tenth Plan, for the growth of the secondarysector was 7.12%, the sector actually grew at 7.5% per annum, which wassignificantly higher than the sectoral growth of 2.15% achieved during theNinth Plan. The major contributors to the growth of secondary sector aremanufacturing and construction, which have growth rates of 8.1% and 6.4%per annum respectively. Analysing the industrial sector further using theIndex of Industrial Production, it is seen that the Textile and Leather industrieshave registered negative growth rates in the Tenth Plan period compared tovery high positive growth rate registered in the Ninth Plan period. The foodproducts industries have also registered only moderate growth rates in theTenth Plan period. These industries being highly labour-intensive should berevived for employment and income generation after addressing theenvironmental issues associated with them. Metals, non-metallic mineralproducts, machinery and transport equipment manufacturing industries haveshown remarkable growth rates in the Tenth Plan period. It is important thatthe growth potential in these sectors are nurtured and promoted in the EleventhPlan period as well. Though the growth of output from unregisteredmanufacturing sector has registered a relatively high growth rate, still thereare episodal evidences to conclude that this sector faces problems like lack ofinfrastructure facilities, credit and technology. The labour insecurity in thissector should also be addressed in the Eleventh Plan.

Services

The growth rate in the services sector has been the engine of economicgrowth, especially the software sector, which has grown due to the naturaladvantage of trained technical manpower available in the state. The servicessector has significant employment potential, which the state has to use toreinforce and bolster economic growth. However, while it cannot be deniedthat the services sector occupies the pride of place in the economic scenario ofthe State, there is serious concern due to the associated movement of labourfrom the villages to the large urban cities.

The Tenth Plan had set a target of 9.77% growth for the tertiary sector.Though the sector had not been able to achieve the fixed target during the

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Plan period, it was this sector, which had made a major impact on the economy.The tertiary sector grew at a rate of 7.72% during the Tenth Plan period ascompared to 6.98% during the Ninth Plan and reached an all time high of11.62% during 2004-05. Communication sub-sector is the major propellantin the services sector showing a 14.8% growth rate during the Tenth Planperiod. Tamil Nadu has always been one among the leading States in thecountry in the IT industry and this leadership position was further consolidatedduring the Tenth Plan. Tamil Nadu has recorded considerable growth in bothhardware and software industries. Software exports from Tamil Nadu havetouched Rs.14115 crore during 2005-06 and expected to cross Rs.20,700crore in 2006-07. The attraction of the services sector is that it has significantemployment potential. However, consequent to non-farm sectoral growth themovement of labour from the villages to the large urban cities has to be tackledthrough spatial dispersion of non-farm activities, as well as providing bettercivic amenities in the urban areas.

Population Growth

The population of the state in the year 2001 was 6.24 crore with a decadalgrowth rate of 11.72 %. The Tenth Plan targeted a reduction in the decadalpopulation growth rate from 11.72% to 7% by 2011. However, from the projectedpopulation figures, it is now expected that the population would reach 6.79crore by the end of the 11th Five Year Plan. This amounts to an increase of8.7% during the period from 2001 to 2012. The projected figures predict thatthere is going to be a 13.4% reduction in the rural population as compared toa 37% increase in the urban population.

Employment and Unemployment

The recent National Sample Survey (NSS) data show that there is amoderate increase in the work force participation rates (WPR) in Tamil Nadufrom 1999-2000 to 2004-05. The increase in WPR is seen in all categories -rural/ urban/ male/ female not only in Tamil Nadu but also in the country asa whole. Urban male employment has increased from 56.3% in 1999-2000 to59.3% in 2004-05. The increase is conspicuous with reference to femaleemployment both in rural and urban areas in Tamil Nadu. While the ruralfemale employment has increased from 43% in 1999-2000 to 46.1% in2004-05, the urban female employment has increased from 21.5% to 24.17%.It may be noted that while 46.1% of the rural females were employed, only24.1% of the urban females were employed during 2004-05. However, thedifference in male employment between rural and urban areas is not

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significant. When compared to the All India situation, Tamil Nadu stands higherin WPR in all categories in the year 2004-05. The employment scenario inTamil Nadu can be seen from the following Table 1.1. 5:

Table 1.1. 5

An analysis of the sectoral distribution of the total work force reveals that

Primary sector accommodates 41.5% of the total work force, while the Tertiary

sector has 30.8% and the remaining 27.7% is in Secondary sector. During the

year 2004-05, both male and the female employment in the Primary sector

have decreased, thereby reducing the overall work force in the Primary sector

by 18 lakh as in the Table 1.1. 6. The growth in employment in the Tertiary

sector is 4.6% per annum while that in the Secondary sector it is 4.4% with

the overall growth of 1.14% per annum.

Table 1.1. 6

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In terms of overall unemployment, Tamil Nadu occupies the second

position next only to Kerala during the year 2004-05 as per the NSS data.

While 25.5% of the labour force are unemployed in Kerala, Tamil Nadu has

12.3% of its labour force unemployed. The rural unemployment is observed to

be almost twice the urban unemployment in the State. As regards urban

unemployment, Tamil Nadu takes the 6th position, while Kerala still occupies

the top position, as in the Table 1.1. 7. While in the rural areas male

unemployment is higher than that of females, in the urban areas female

unemployment is more than that of males. The unemployment in Tamil Nadu

as a per cent of labour force is higher than the country average, both at the

aggregate level as well as at all the disaggregated levels except urban female.

There appears to be a correlation between the literacy rate and the

unemployment, with the unemployment levels being higher in the States

where the literacy levels are higher.

Table 1.1. 7

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A comparison with the unemployment, which existed during the year

1999-2000, shows that the position has worsened in the year 2004-05. Over

all, the unemployment rate has increased by 0.3 percentage points during

the period between 1999-2000 and 2004-05 while the rate of female

unemployment has grown by 1.7 percentage points. Male unemployment

has, however, decreased during the period by 0.60 percentage points. Another

interesting feature to be noted is that the rural male unemployment has been

growing while the urban male unemployment has been decreasing, showing

the resurgence of the rural non-farm sector. The details can be seen from the

following Table 1.1. 8:

Table 1.1. 8

Infrastructure

Tamil Nadu with a road network of 1,88,700 kms has always been ahead

in developing road infrastructure. The state has a road density of 286 kms

per lakh population and 137 kms per 100 sq km area as against the all India

density of 258 kms and 75 kms respectively. The Tenth Plan had a goal of

providing all weather roads to all habitations with a population of 500 and

above by 2007. As against this under the Pradhan Mantri Gram Sadak Yojana

(PMGSY) road works to a length of 3,244.55 Km. have been completed incurring

an expenditure of Rs.378.70 crore under Phases I to III (2001-02 to 2003-04).

Under Phase IV (2004-05) and under Phase V (2005-06) of the programme,

road works to the length of 826 Km. and 849.13 Km. were covered at an

estimated cost of Rs.117.91 crore and Rs.182.05 crore respectively. Action is

being taken to cover all the remaining unconnected habitations with a

population of 500 and above in Phase VI to be proposed in 2007-08.

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The Tenth Plan intended to provide access to electricity, a trunk road,

telephone and internet connectivity, a school and clean water and sanitation

in all villages by the year 2010. All the villages have been electrified as per the

old definition. Further, all villages in Tamil Nadu have been fully covered with

Village Public Telephones (VPT).

Drinking Water

The Tenth Plan targeted to provide drinking water to all habitations and

make them “fully covered habitations”. The state has accorded high priority

for providing 40 lpcd of safe drinking water supply to the rural areas of the

state. However, out of the 86,981 rural habitations, 50529 habitations were

fully covered (40 lpcd and above), 35241 partially covered (10-39 lpcd) and

1211 habitations were not covered (0-9 lpcd), based on an assessment made

in September 2006. In terms of the availability of water supply service, the

areas under the urban towns are classified into three categories namely Good,

Average and poor. At the end of the Tenth Plan, out of 718 urban civic bodies,

excluding Chennai Corporation, 382 are considered good, 307 average and

29 poor.

Forests

As against the goal of increasing the forest area cover to 25% of total

geographical area by 2012, the state has an area of only 22877 sq. km under

forests, which constitutes 17.59% of the geographical area in the year 2006.

Even so, area under “forest and tree cover” constitutes 21.25% of the total

geographical area of the State as assessed by the Forest Survey of India in the

year 2003. This shows the relative success of the State in developing tree

cover outside the reserved forest areas.

Investment

The investment requirement for the Tenth Plan was estimated to be

Rs.2,62,502 crore. Of this requirement, Rs. 40,000 crore was to be met from

the State Plan funds and Rs. 48,000 crore was the anticipated Central Sector

outlay. The state had therefore to depend on Private and Foreign Direct

Investments to meet the gap of Rs. 1,74,502 crore. It may be observed that

from the State Sector outlay of Rs. 40,000 crore, Rs.37,690 crore was achieved

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in real terms (2001-02 prices) during the Tenth Plan period, working out to

94.22%.

Fiscal Deficit

The State Government has aimed at bringing down the fiscal deficit from

3.6% to 1.5% of GSDP during the Tenth Plan. However, as per the Revised

Estimates of 2006-07, the fiscal deficit is 2.7% of GSDP. Though the Tenth

Plan target could not be met, it is well within the norms of the Fiscal

Responsibility Act. It was expected that during the Tenth Plan period the ratio

of revenue deficit to revenue receipts could be brought down from 19% to 0%.

In this case also, though the target could not be achieved, the ratio has been

reduced to 0.61% for the year 2006-07 as per the revised estimates. The ratio

of revenue deficit to revenue receipts has been generally declining with, some

fluctuations, over the last one decade and is depicted in the Graph 1.1. 2

given below:

Graph 1.1. 2

1.1.3. Financial performance

The outlay for the Tenth Plan for the State of Tamil Nadu was fixed at

Rs.40,000 crore at 2001-02 prices. The State could spend more than the

outlay of the Tenth Plan in current prices. However, the sate could spend

about 94.2% at 2001-02 prices. The details of Plan Expenditure for the different

years of the Tenth Plan are given in the following Table 1.1.9.

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Table 1.1.9

The Tenth Plan accorded priority to social sectors like Education, Health,Water supply and Sanitation, Welfare of SC/ST and Social Welfare andNutrition by providing the outlay to the extent of 33%. All the same theinfrastructure sectors like Power, Roads and Transport and Industries clinchedan outlay of 38%.

The agriculture and rural development sectors were provided with anoutlay to the extent of 26%. During the implementation of the plan theemphasis has slightly shifted from the infrastructure sector to the social sectors

as per the details given in the following Table 1.1. 10:

Table 1.1.10

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1.2. Poverty and Human Development

beU¥ÃDŸ JŠrY« MF« ãu¥ÃDŸ

ahbjh‹W« f©gh lçJ- FwŸ 1049

One may sleep in the midst of fire.

But none can sleep in the midst of extreme and abject poverty

-Thirukkural 1049

1.2.1. Poverty

Tamil Nadu has always been committed to alleviating poverty by

implementing various developmental schemes. As a result of the welfare

initiatives taken, the state has had one of the most successful records of

reducing poverty. While the state had more than half of its population below

the poverty line in 1973-74, it has reduced to less than one fourth in 2004-

05.

The Tenth Plan had targeted that poverty should be reduced to 10% by

2007 and be nearly eliminated by 2012. Though this plan target could not

be achieved, the poverty estimates made available for the year 2004-05 by the

Union Planning Commission show that poverty in Tamil Nadu has declined

drastically to 22.5% during 2004-05 from 35% during 1993-94. The decline

is faster in urban areas than in the rural areas thereby reversing the trend of

higher urban poverty prevalent in 1993-94.

Graph 1.2. 1

Source: March 2007, Poverty estimates for 2004-05, Planning Commission, Government of India, http://planningcommission.nic.in/news/prmar07.pdf

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The Union Planning Commission has estimated the poverty line for Tamil

Nadu for the year 2004-05 to be Rs. 351.86 for the rural areas, and Rs. 547.42

per capita per month for the urban area. The decline in the poverty ratios in

Tamil Nadu can be clearly seen from the Graph 1.2. 1.

While the state ranks 13th in the country in terms of the proportion of

poor, it occupies 7th position while considering the number of people living

below the poverty line. Based on the estimates of the Union Planning

Commission, there are about 146 lakh persons living below the poverty line

in the state, with 77 lakh living in the rural and 69 lakh in the urban areas.

Table 1.2. 1

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In spite of the relative success of the State in reducing poverty, it is amatter of concern that nearly one fourth of the population lives below thepoverty line. The rate of decline of urban poverty has been faster than that ofrural poverty, reversing the trend of high urban poverty prevalent in 1993-94.In terms of absolute number, it is seen that the number of rural poor is nearly8 lakh higher than the urban poor. Rural poverty presents a formidablechallenge, especially in view of the stagnant growth of the agriculture sector.

Analysing the results of recent rounds of the NSSO surveys, two importantaspects of rural poverty emerge – one, the non farm employment monotonicallyincreases with increase in per capita consumption expenditure and two, themarginal and small farmers remain poor. A substantial portion of landlesshouseholds are also possibly dependent only on the farm sector. This lendscredence to the presumption that the reduction in rural poverty has beenspurred by the growth of the non farm sector. At the same time, there is clearevidence to substantiate the fact that the stagnant agriculture sector hasaffected the livelihood of the small and marginal farmers and agriculturallabourers. One of the strategies for alleviating rural poverty would be to increasethe area under cultivation through reclamation of cultivable waste and fallowlands. The state government has also launched a scheme for distribution of 2acres wasteland to poor agricultural labour families to achieve this objective.

The real challenge of development lies in transferring the benefits ofeconomic growth to the vulnerable sections to lift them above the poverty line.The strategies for reducing poverty should take in to account the changingstructure of economy of the state and employment profile in the state. Whileemployment guarantee schemes can tackle poverty in the short run, the longterm strategy should combine non farm sector development and skillupgradation to improve the employability of the poor in the growth sectors ofthe state. As discussed above, rejuvenation of the farm sector is another basicprerequisite for reduction of rural poverty. In the meanwhile, the state shouldalso ensure that a social security net is put in place so that the poor are notdenied access to the basic necessities of life such as food, shelter, educationand health care.

1.2.2. Human Development

Human Development is the culmination of the transition from thecommodity approach to the capability approach to economic development. Inthe process of enlarging peoples’ choices, Tamil Nadu has reached severalmilestones right from the 1920s. The state had empowered the oppressed

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sections of society by providing opportunities in education and employmenteven in 1920s through progressive reservation orders. The state was the firstto introduce the mid day meal for school children and to extend it as a welfareprogramme even in 1954. The programme was further strengthened andexpanded as the Puratchi Thalaivar M.G.R Nutritious Meal Programme. Theprogramme has now been reinforced by the supply of three eggs per week inthe Nutritious Meal Programme centres. This coupled with a host of otherspecial and reform-oriented programmes for the welfare of the scheduled castes,scheduled tribes and backward communities and for children, women andthe aged has put the state in the top order in the Human Development map ofthe country. These efforts have resulted in the State ascending to the thirdposition among all States in human development in 1991, from the seventhposition in 1981. The State has maintained the level of performance in 2001also. Having incorporated the principles of human development in its growthpath, the State prepared and released the first Tamil Nadu State HumanDevelopment Report (TNSHDR) in 2003. Five District Human DevelopmentReports (DHDR) for the districts Dindigul, Nagapattinam, Sivagangai,Thiruvannamalai and Cuddalore are in the final stages of preparation. Theexercise of assessing human development performance of the State and districtswill be a continuing process.

To understand the progress of Human Development in the state in therecent past, the State Planning Commission has compiled the HumanDevelopment Index (HDI) and the Gender Development Index (GDI) for thestate and the districts, using the latest available data following the methodologyused by the TNSHDR 2003. The HDI for the state as now assessed has goneup to 0.736, from a value of 0.657 in the TNSHDR 2003. The HDI varies from0.842 for Chennai district to 0.656 for Dharmapuri district. As in theTNSHDR 2003, Chennai maintains the first place in the HDI rank. Dharmapuriand Villupuram brought up the rear occupying the last two places in theTNSHDR 2003. The same trend continues in 2006 also with Dharmapuri beingthe last in rank and Krishnagiri (newly bifurcated from Dharmapuri) andVillupuram Districts holding the 29th and 28th ranks respectively. Though theHDI and the relative ranking between districts is determined by all theindicators, it is seen that the top and bottom positions are, for the most part,determined by the per capita income, which is the highest in the industrializedurban metropolis of Chennai and lowest in the largely agrarian districts ofVillupuram and combined Dharmapuri. The details of compilation of the HDI

are presented in the following Table 1.2.2:

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Table 1.2. 2

While it is gratifying for Tamil Nadu to be one among the most developed

states in the country, both in terms of economic development and human

development, the intra-state differentials in the over all HDI and the components

of the HDI are a matter of serious concern. The difference in the HDI between

the highest and the lowest ranked districts is substantial. A closer look at the

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different components of the HDI reveals their interrelationship. Chennai

district not only occupies the highest overall rank, but also tops in life

expectancy and income indices, while occupying the fourth position in the

Literacy index. Conversely, Dharmapuri district which has the last rank in

the over all HDI, performs poorly in all the component parameters. However,

this level of correlation is not seen in all districts. Kanyakumari, which tops

the districts in the Literacy and education index, is at the sixth position as far

as the Human Development Index, since it occupies the 17th position in terms

of the per capita income and 14th position in terms of life expectancy. The

following Table 1.2. 3 gives the best performing and the least performing five

districts as identified by the HDI and the component indices:

Table 1.2. 3

Another useful comparison between the HDI rank and district per capita

GDP rank could be used to analyse how the different districts convert the

income available to improve the over all well being of the people. This can be

seen from the following Table 1.2. 4 which gives the comparison between the

ranks of district based on the per capita GDDP and the HDI.

Performance of Districts by HDI

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Table 1.2. 4

It is seen from the above table that 13 districts have higher HDI rank

than GDDP per capita rank. This implies that these districts utilized the higher

income available to improve the status of the human development effectively.

The Gender Development Index (GDI), which adjusts or discounts the

gender inequality, shows the level of attainment in the Human Development

when there is no gender disparity. The following Table 1.2. 5 gives the GDI for

the different Districts as computed with the latest data:

Table 1.2. 5

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The least performing districts in terms of the GDI are: Dharmapuri (30),

Villupuram (29), Krishnagiri (28), Thiruvannamalai (27) and Perambalur (26).

These districts also perform the lowest in terms of gender equality in education

and income. However, except Perambalur and Dharmapuri, the other three

districts are average performers in terms of gender equality in life expectancy

at birth. The best performing districts in terms of the GDI are: Chennai (1),

Thoothukudi (2), Kancheepuram (3), Coimbatore (4), Thiruvallur (5). These

districts uniformly perform well in the other indices as well, maintaining almost

the same ranking.

Comparing the ranking of the districts based on GDI and HDI, it is seen

that 22 out of 30 districts have identical ranks. Further, the top and bottom 5

districts are the same in respect of both HDI and GDI ranking. There are four

districts namely, Villupuram, Thiruvarur, Nagapatinam and Pudukkottai

where the GDI rank is poorer than the HDI rank, which shows that the women

suffer lesser achievement than men. More efforts to reduce gender disparity

are required in these districts. The close correlation between the GDI and HDI

rank in our state indicates the linkage between human development and

status of women. Any effort to reduce gender disparity would enhance human

development and vice versa.

1.2.3. District Human Development Reports

The State Planning Commission has commissioned District Human

Development Reports (DHDR) in five districts as mentioned earlier. Out of

23

these, the reports of three districts namely Cuddalore, Thiruvannamalai and

Sivaganga are available. As these districts were chosen with HDI less than the

state average, the reports analyse the factors responsible for this backwardness

on the sectoral basis. The DHDR’s also present a block wise comparison of the

different indicators of human development and highlight the disparities within

the district in the crucial parameters. In addition, district specific initiatives

and success stories that address shortfalls in health, education and income

levels have also been documented in the reports.

It is expected that the DHDR will make the planning process at the district

level more effective. It will also help to design and implement district plans

and programmes with a human development perspective. This would be

achieved by analysing the status of human development attained and the key

challenges faced in reaching the HD goals in the context of adequate financial

allocations and efficient service delivery.

The HDIs are not compiled at block levels for technical reasons.

Nonetheless, the information available regarding different parameters gives a

fair idea of the status of human development not only at the district but also

at the sub district level. The key questions of the planning process i.e. what is

our situation, where do we want to go and how do we reach, are addressed in

these reports in the form of analysing the situation, preparing a blue print for

the future and finding the resources to achieve these area specific goals.

The following common features are observed in the three districts studied

so far. The share of primary sector has declined without significant decline in

its share in the work force. This has been the major cause of under employment

as more than 70% of the work force continues to be involved in agriculture.

The under employment caused by this scenario is further aggravated by a

high level of casualization of labour. The tertiary sector has become the primary

vehicle of growth from 1995-96 onwards.

The education and health indicators have registered significant

improvements in all the three districts. While the overall sex ratio is reasonable,

the worsening juvenile sex ratio is a cause for concern. The overall reduction

of IMR and MMR in the three districts masks a high level of disparity between

the blocks. Anemia among children, adolescent girls and pregnant women is

still rampant. Another common feature is the low access to sanitation facilities,

which is bound to have an impact on the health.

24

On a similar note, both the male and female literacy rates have increased

in the three districts with gender disparity coming down. Due to the

implementation of the Sarva Shiksha Abhiyan project, all the process indicators

of education relating to access, enrolment, retention and completion have

shown substantial progress in the primary and upper primary stages. There

is less evidence of achievement in quality of education imparted. The

performance in respect of higher levels of education leaves much to be desired

in terms of distribution of infrastructure, access of students and their

performance.

Apart from the common issues discussed, the reports reveal district specific

concerns that need to be addressed. In Sivagangai district, the out migration

of men to Malaysia and its impact on the economy need to be studied. This

district also has a unique land holding pattern with 95% of the farmers holding

about 65% of the total cultivable land while 5% of the farmers (mostly medium

and large) holding the remaining 35%. More than half of the rural BPL

households are landless (56%) with the proportion of landless being higher

among the SC households. Similarly, the proportion of destitute in terms of

monthly family income less than Rs.250 is higher among the SC community.

In Tiruvannamalai district, Jawadhu Hills is an outlier in terms of high

population growth, low sex ratio, high home deliveries and low performance

in nearly all the health indicators. On the education side also, the dropout

rate is very high. This block forms part of an inaccessible hilly belt and the

factors responsible for its backwardness have to be examined and addressed.

The Cuddalore district shows the highest level of intra district disparities.

The poverty level recorded in the urban areas is abnormally high. The district

has a large percentage of SC population whose overall literacy is higher than

the district. However, the female literacy, especially in specific blocks is very

low revealing a wide gender gap. The causes and remedies for the situation

should form part of the district planning process.

The state has implemented several programmes for improving Human

Development. The programmes like Puratchi Thalaivar MGR Nutritious Meal

Programme, free supply of bicycles, uniforms etc, distribution of lands after

converting them to cultivable lands, Vazhnthu Kaatuvom project etc, are some

such to mention. The state is further intensifying its endeavor in this direction

coupled with social justice so as to remove spatial and social disparities.

25

1.3. Objectives and Strategies

Ka‰Á ÂUéid M¡F« Ka‰¿‹ik

Ï‹ik òF¤Â éL«- FwŸ 616

Diligence brings prosperityIndolence adds disgrace

- Thirukkural 616

1.3.1. Introduction

Since the formation of the State Planning Commission in Tamil Nadu in

1971, the planning process has evolved as the most important instrument to

attaining growth with social justice in the state. The Eleventh Plan (2007-08

to 2011-12) carries on this tradition and is responding to the objective reali-

ties of economic conditions as manifested in the state today. The Plan has to

be formulated taking into account the achievements and failures of the past

one and half a decades of planning and recent economic development in the

state, as these have a bearing on the growth prospects of the state economy in

the medium term.

A predominantly agrarian economy at the time of independence, Tamil

Nadu, had a large and fast growing population, with more than half of them

were living below poverty line and illiterate. Industrialization did not spread

far and wide in the state; the service sector in the state was at its infant stage.

Today, we have visibly reduced population growth rate to less than the national

average; the rate of reduction in poverty ratio is higher than the national

average; size of literate population is increased appreciably besides developing

a broad based education sector. We have developed a large non-farm sector,

which is modern, somewhat spatially spread as manifested in growth of urban

centres across the state. Evidently, the per capita income of the state, in real

terms, has increased manifold, the personal consumption pattern has changed,

life expectancy has increased and birth and death rates have declined thanks

to well spread public health and health care facilities in the state. The Eleventh

Plan should build on these growth features and lay foundation for faster and

sustainable growth in the future.

In the last one and half a decade the growth performance of the state

economy has not been as high as that of the national economy. The

26

compounded annual growth rate of GSDP of Tamil Nadu during the periods of

the Ninth Plan (1997-2002) and Tenth Plan (2002-2007) were 4.8 per cent

and 6.8 per cent respectively. These rates were lower than the growth rates of

the all India GDP, which stood at 5.5 per cent and 7.6 percent for the same

periods. The primary sector, of which agriculture is the backbone, has been

in a crisis through the period 1993-94 to 2005-06. Though industrial and

service sectors have shown impressive growth rates, the small and tiny

industries, which have high employment potential are languishing. As a result

the growth of employment opportunities is low and nearly 145 lakh people

are living below poverty line. The regional disparities, measured between

districts in terms of economic growth rate, and of educational, health and

infrastructure, are widening. Though corrective measures have already been

initiated in 2006 a realistic blueprint of the Eleventh Plan must take into

account these developmental challenges.

1.3.2. Objectives

The broad objective of the Eleventh Plan shall be to achieve steady and

sustainable growth of the economy, coupled with social justice. Safeguarding

the livelihood of the people through providing adequate educational and

employment opportunities will be a major thrust area for the Eleventh Plan.

In addition, the Eleventh Plan will aim to upgrade the quality of life of the

urban and rural population by providing essential infrastructure, thereby

ensuring and enhancing the delivery of basic civic services such as water

supply and sanitation. The state has adopted a targeted overall growth rate of

9% on par with the recommendations of the National Development Council

for the Indian economy. The targeted growth rate for various sectors of the

economy and other important monitorable targets are given below:

Income and Poverty

� To attain 9% growth of GSDP per year.

� To achieve a minimum of 4% per year in agriculture and allied activities.

� To achieve 9.2% growth per year in Industries sector.

� To achieve 10.1% per year in services sector.

� To create two million additional jobs during the Eleventh Plan period.

� To reduce poverty ratio from 22.5% in 2004-05 to 17% in 2012.

27

Education

� To achieve universal completion of elementary education.

� To achieve 90% total literacy rate and 100% youth literacy rate.

Health

� To reduce the Infant Mortality Rate from 37 per 1000 live births in

2005 to 20 per 1000 live births by 2012.

� To reduce Maternal Mortality Rate from 0.9 per 1000 live births in

2005 to 0.45 per 1000 live births by 2012.

� To achieve a Total Fertility Rate of 1.8 by 2012.

� To reduce the malnutrition among children of age group of 0-3 to

18.4% by 2012.

� To reduce anemia among women and girls (15-49 years) to 28.3% by

2012.

Women and Children

� To raise the juvenile sex ratio (age group 0-6) from 942 in 2001 to 950

by the year 2012.

Infrastructure

� To achieve 100% electrification of households both in rural and urban

areas.

� To provide clean drinking water to all by 2012.

� To provide one pucca electrified school building, one library with

adequate books, a sports centre with facilities, connectivity to main

road, one drinking water source, street lights and internet connectivity

to all the village panchayats by 2012.

� To provide water supply with 110 lpcd for every corporation, 90 lpcd

for every Municipality, 70 lpcd to every town panchayat by 2012.

� To provide underground sewerage system to all urban local bodies.

Environment

� To increase the forest and tree cover from 21% to 33% of total

geographical area by 2012.

28

1.3.3. Strategies

The strategies for the Eleventh Plan are drawn up based on past

development experience in the backdrop of the prevailing economic

environment in the country and particularly in the state. The public

expenditure during the Eleventh Plan period should aim at facilitating the

achievement of the objectives with focus on revival of the primary sector,

improvement of civic amenities, training for skill development and employment

generation. The main philosophy of the Eleventh Plan should be inclusive

growth, which brings the vulnerable and marginalized groups within the social

security net. Private sector should be made an effective partner in the state’s

economic progress with its investments being channelized towards the priority

sectors, where they will be economically productive and socially relevant.

Agriculture and Rural Development

Sustained agricultural growth is essential to attain a high economic growth

in the state. When agriculture fails, it not only impoverishes those who are

dependent on it for their livelihood, but also threatens the food security in

the state. Periodic agricultural failure induces rural-urban migration, creating

excessive pressure on urban infrastructure and amenities. Natural calamities

and monsoon failure tend to affect agriculture in some areas of the state more

than others, accentuating regional imbalances in development. The strategy

for agriculture development should address issues like increasing area under

cultivation, decreasing the yield gap, optimizing water management and

improving post harvest processing and marketing and providing relief during

flood and drought years.

Increasing farmers’ access to cultivable land is a major priority area

under the Eleventh Plan. The flagship scheme for distribution of two acres of

land to landless agricultural labour households has attempted the successful

transformation of wastelands to cultivable land, through land development

and creation of water sources. It is now proposed to extend this scheme to

private lands where a cluster approach will be followed for bringing marginal

lands into productive cultivation.

Another challenge before the agriculture sector is to improve the overall

productivity of the land and reduce the yield gap for various crops. This calls

for timely availability of all inputs such as quality seeds, fertilizers and

29

pesticides. Serious attention has to be paid to the dissemination of appropriate

agricultural technology to the farmers. It is essential to strengthen agricultural

research and develop the extension services during the Eleventh Plan to achieve

this objective.

Agriculture in the state cannot be made viable and sustainable unless

the farmer is ensured access to credit from organized financial institutions at

reasonable interest rates. After the new Government was formed in 2006, the

state has implemented a scheme for loan and interest waiver for farmers who

have obtained credit from cooperative banks in the state, in view of the

successive crop failures in the recent past. Strengthening the cooperative

credit system and improving farmers’ timely access to credit should be a thrust

area during the Eleventh Plan.

The critical factor in increasing overall production continues to be water

availability and management. As the state has already exploited its surface

water potential to a large extent, the focus will be on promoting rational use

and management of surface and ground water. Rainwater harvesting and

watershed management should be encouraged to increase water conservation

and rational use of water. A major scheme is being implemented for revitalizing

the areas under tank irrigation and promoting the efficient use of water through

participative irrigation practices and agriculture extension services.

Dry land farming is the mainstay of the small and marginal farmers who

do not have assured irrigation facilities. The agricultural strategy of the state

should work towards strengthening area under rainfed crops mainly by

introduction of drought resistant varieties. Water saving techniques such as

drip irrigation should be incentivized, not only to increase area under

cultivation, but also to enhance the productivity of the land. Crops such as

pulses and oilseeds that are less water intensive should be encouraged through

effective extension services as well as a remunerative price for agricultural

products should be ensured.

The schemes of the National Horticulture Mission should be effectively

utilized to promote horticulture and floriculture in the State. Precision farming

techniques should be encouraged to improve productivity in these sectors

coupled with innovative strategies to effectively market these products and

improve farm income.

30

Increasing the production of milk, meat, eggs and fish by revitalizing the

animal husbandry and fisheries sector should be given priority. Improved

veterinary extension services to carry the findings of research to the farm

should form the focus of the Eleventh Plan period.

Higher agriculture production will be meaningful only if it ensures to

higher income for the farmer. Providing adequate warehousing facilities,

strengthening the marketing linkages, providing needed information and

eliminating middlemen to provide wider direct access to the farmer should

form the basic strategies to increase farm incomes during the Eleventh Plan.

Environment and Forests

Development and environmental degradation must be balanced to meet

the needs of the society. Protection of the fragile ecosystems in the state is

essential to ensure sustainable development, because ecological degradation

affects, first and foremost, the poor and the innocent posterity. Environmental

protection through stricter enforcement of environmental laws and cleaning

of rivers should continue with greater vigour in the Eleventh Plan period.

Education and training of environmental managers and creating environmental

awareness among students and the general public are important activities to

increase the capacity for better environmental management in the society as

a whole.

Reclamation of degraded forests is the key to preserving biological and

genetic diversity and will form the core of the sectoral strategy during the

Plan period. Planting trees in the area outside forests, by utilizing public and

private waste lands is the only proven way to achieve the national objective of

increased green cover. The constraints to forestry development such as over

exploitation due to lack of awareness, inadequate research and training and

lack of incentives to increase tree cover outside forests should be addressed.

Human development in tribal societies is an integral part of sustainable forestry

development. Research and marketing initiatives for development of timber

and timber products will enthuse farmers to utilize fallow lands for taking up

tree plantation.

31

Industry and Infrastructure

The Tamil Nadu economy is driven primarily by non-farm sectoral growth

since 1990. Balanced industrial growth is essential to provide employment

opportunities to the migrant labour force from agriculture as well as to equitably

disperse growth centres across the state. The need for state intervention to

ensure such spatially well spread industrial development in Tamil Nadu

assumes renewed significance in the context of increasing regional imbalances

over the last one and a half decades.

The role of the public sector in providing infrastructure facilities such as

roads, transport, power and connectivity is essential to retain Tamil Nadu’s

premier position as a favoured investment destination. This will help to ensure

accelerated industrial growth for achieving the twin objectives of creating

employment opportunities and balanced regional development. The government

should also facilitate industrial investment and growth in the state through

the creation of industrial estates and new industrial centres, ensuring access

to credit through industrial financial institutions as well as through

simplification of procedures for industrial clearance. The Government will take

measure to reform Public Sector Undertakings so as to face the competition in

the market place as well as to promote economic growth.

The promotion of small and tiny industries through cluster formation

will take centre stage in the industrial policy because they are especially

effective in increasing employment opportunities and in spatially spreading

the growth process.

Rural and Urban infrastructure

More than half the population of Tamil Nadu will be living in the urban

areas by the end of the Eleventh Plan. Improving infrastructure facilities such

as roads, water supply, sewerage and housing are major challenges before

the urban local bodies. Innovative systems of financing these urban amenities

will be a test for the fiscal managers of the state.

Rural infrastructure should be constantly upgraded to ensure quality of

life for those living in the rural areas. Schemes for developing road connectivity

as well as provision of drinking water and sanitation should be taken up

under various rural development schemes. Provision of social infrastructure

32

in the villages such as education and health facilities on par with urban areas

should be another priority area of the Eleventh Plan.

In a water-starved state like Tamil Nadu, conservation of water through

rainwater harvesting and rational water use will have to be given emphasis.

Conversion of seawater into drinking water through desalination will be given

high priority during the Eleventh Plan, especially to meet the growing needs

of Chennai city as well as some water starved coastal areas such as

Ramanathapuram.

Employment

Productive work opportunities for all, should be the central aspect of

development in any society. Employment engages human resources, aiding

growth and alleviating poverty. A strategy for employment orientation of the

growth process is inevitable to achieve the Eleventh Plan objectives.

With a huge backlog of unemployed human resources, the acceleration

of expanding employment opportunities should surpass the growth rate of

population. This will be no mean achievement when employment elasticity of

growth in the country has been declining in the successive plan periods.

Sectors such as agriculture and allied industries, wasteland development,

small and cottage industries, housing and construction, service and

maintenance sector and rural infrastructure have high employment potential,

and therefore, should be developed. The tendency to substitute capital for

labour in some of these sectors should be addressed through imparting skills

to the youth and retraining the labour force engaged in these activities. Other

issues to be addressed in the Eleventh Plan, includes, seasonal nature of

employment in these sectors, unequal wage rates for men and women, and

inadequate labour security systems. The Eleventh Plan strategy for employment

growth involves encouragement of labour intensive economic activities, increase

in skill formation through expansion of capacities in ITI’s and polytechnics,

establishing linkage with industry to develop relevant training programmes

in newly emerging growth areas, strengthening of labour security measures

for unorganized labour and reducing gender gap in employment and wages.

33

Human Development

Human development is the ultimate goal of the development process.

Provision of education and health to improve human capabilities therefore is

a major priority of the Eleventh Plan along with poverty alleviation.

The state has made rapid strides in the provision of basic education.

Having achieved universal enrolment and retention at the elementary level,

the focus has to shift towards quality improvement if the State is to sustain its

educational progress and build human capabilities.

Tamil Nadu is one among the front-ranking states in providing secondary

education. The government schools, government-aided schools, and private

schools have been following different patterns of syllabi and evaluation system

at the secondary level. ‘Equitable education system’ will be gradually introduced

in the Eleventh Plan period. In the first phase, differences in infrastructure

facilities and examination system will be addressed. It is important to note

that the syllabi and examination system are common for schools of all

managements at the higher secondary level even today in our state.

The disjunction between the educational system and work related skills

should be removed by creating an appropriately designed system of vocational

education. Imparting communication skills in both Tamil and English will be

given emphasis to improve employability of students. Continuous capacity

building of teachers at all levels, development of a student-centric curriculum

and appropriate use of Information and Communication Technology should

form the major strategies for upgrading the quality of school education.

In the field of higher education, imparting employable skills and expanding

educational opportunities will be the major objectives for the Eleventh Plan.

Since 1920, when the Justice Party was in power in the Madras Presidency,

the state has been following the reservation policy in education, ensuring

equal access to education to all sections of the society. Already the state

government has opened three new technical universities, three new medical

colleges, five arts and science colleges and has introduced the shift system in

government arts and science colleges. The state government has also ordered

the waiver of fees for students enrolled in arts and science undergraduate

courses in government and government-aided colleges from the academic year

34

2007-08. Nevertheless, in the last two decades, the role of self-financing

institutions in higher education has increased. As these institutions have not

been following the reservation policy and have been charging higher tuition

fees, there are difficulties in establishing social justice in the field of higher

education. In 1966, Kothari Commission emphasized the need to address the

regulatory issues that might arise out of uncontrolled growth of private sector

in higher education. Since 2006, the state government has enacted several

acts to increase the Government quota seats which are allotted on the basis of

reservation up to 65% and to regulate collection of tuition fees in self-financing

professional colleges. In 2006 the state government has also halved the tuition

fees in state–owned engineering and medical colleges. The entrance

examination for admission in professional courses has been cancelled.

Identification and promotion of basic arts and sciences departments as centers

of excellence in the state universities and special measures to promote basic

arts and science education in higher education institutions will also be taken

up during the Eleventh Plan.

In 1976, education was brought from the state list to the concurrent list

of the Constitution of India. This dual control has increased confusion and

contradictions in the education sector; consequently there are difficulties in

ensuring access to education for the students from socially depressed

communities. The only solution to these problems could be the transfer of

education to the state list of the Constitution of India.

The state can pride itself on having a well spread network of health facilities

at primary, secondary and tertiary level. Though there has been consistent

improvement in the health indicators such as IMR and MMR, a renewed thrust

is necessary to accelerate the progress towards the state’s development goals.

Innovative approaches are required to reach the unreached and provide them

with access to quality health services. A special focus should be given for

strengthening urban health services, especially for the urban poor.

Provision of timely accident and trauma care should be emphasized to

reduce morbidity and mortality. Prevention and control of communicable and

non-communicable diseases should form the core thrust areas of the Eleventh

Plan. Newly emerging vector borne diseases such as chikunguniya as well as

lifestyle diseases such as diabetes and cancer should be tackled with special

strategies during the Eleventh Plan period.

35

Tamil Nadu has been successful in reducing the growth rate of population.

This lower population growth is inextricably linked with better education,

health and income levels, which the state has been able to provide. The thrust

towards meeting the unmet demand for family planning should be continued

to strengthen our development effort.

The state is well on its way towards achieving its human development

goals. However, there are glaring inter district and intra district disparities in

attainment levels. The human development paradigm should form an integral

part of the planning process, so that resources can be allocated based on

backwardness and all can equally share the fruits of growth.

The target growth rates for the different sectors of the economy in the

Eleventh Plan are given in the following Table 1.3. 1:

Table 1.3. 1

36

1.4. Plan Outlay and Resources

bghUbs‹D« bghŒah és¡f« ÏUsW¡F«

v©âa nja¤J¢ br‹W- FwŸ 753

Waneless wealth is light that goesTo every land and gloom removes

- Thirukkural 753

1.4.1. Plan Outlay

The Eleventh Five Year Plan lays emphasis not only on economic growth

but also on eliminating social, spatial and sectoral imbalances. Based on the

priorities and strategies identified for achieving this objective, it is estimated

that the state would need an overall Eleventh Plan outlay of Rs.85,344 crore.

This outlay has been carefully allocated to the different sectors taking into

consideration the state of development of the sector, the scope and potential

for improving the sector, the strategies and thrust areas and the targets to be

achieved in this sector. Adequate provisions have been made for continuing

the ongoing schemes as well as the newly proposed schemes. The detailed

sectoral allocation of the outlays is given in the following Table 1.4. 1:

Table 1.4. 1

37

38

A comparison between the outlays allocated for the different sectors in

the Eleventh Plan and the expenditure incurred during the Tenth Plan reveals

that the different sectors have been judiciously taken care of. In order to

rejuvenate agriculture, the sector has been allocated outlay to the extent of

9.18% as compared to the expenditure of only 6.38% during the Tenth Plan.

As, much of the rural development programmes are carried out using the

central funds, the Rural Development sector has been allotted 12% of the

total outlay during the Eleventh Plan. Education and health sectors have been

provided with outlays to the extent of 4.28% and 3.20% as compared to the

Tenth Plan expenditure of 4.16% and 3.04%. To meet the increasing demand

for the urban amenities and urban infrastructure, the urban development

sector has been provided with an outlay to the extent of 7.16% as compared to

the expenditure of 7.04% during the Tenth Plan. To do justice to the socially

underprivileged population of Scheduled Castes, Scheduled Tribes and Other

Backward Castes, 4.18% of the total outlay has been allocated as compared to

the Tenth Plan expenditure of 4.01%. The following Table 1.4. 2 provides the

sectoral performance of the state during the Tenth Plan and the proposed

outlays for the Eleventh Plan:

Table 1.4. 2

( .

39

The state has thus allocated the Plan outlay in such a way that high

growth rate is achieved and a greater share of benefits of the growth reaches

the poor and weaker sections of the society.

1.4.2. Resources

The State Plan outlay necessary to achieve the growth and development

objectives of the Eleventh Plan has been fixed at Rs.85,344 crore as against

the outlay of Rs.40,000 crore fixed for the Tenth Plan. The pattern of financing

for the Tenth Plan is given below in Table 1.4. 3:

Table 1.4. 3

40

A review of the Tenth Plan resources projection and achievement figures

show that the target was achieved in spite of fiscal constraints in the first half

of the Plan. Although the annual plan in the early years had restricted outlays

due to various factors, buoyancy in State taxes along with economy of staff

expenditure ensured that overall plan targets were fully met.

Analysing the performance by source, it is seen that Central Assistance

realized fell from the projected value of Rs.15006 crore to Rs.8392 crore. State’s

own funds, however, showed a remarkable improvement from a projection of

Rs.–6134.98 crore to Rs.3076.67 crore, largely due to the factors of tax

buoyancy and fiscal economy. This was in spite of the negative contribution

from Public Sector Enterprises (PSE’s) and the lack of Additional Resource

Mobilisation (ARM) during this time. One interesting feature of the State’s

own borrowings was the unexpected but significant increase under small

savings loan, which went up from a projection of Rs.9110 crore to a level of

Rs.18292 crore during the Plan period.

During the Tenth Plan, the tax GSDP ratio, which was 9.25% in

2002-03, increased to a level of 11.63% in 2006-07. Salary, pension and interest

as a percentage of Total Revenue Receipts went down from 68 % in 2003-04 to

58% in 2006-07. This figure highlights the economy measures undertaken

under the item of expenditure which was responsible for improving the

resources position.

The tax to GSDP ratio of Tamil Nadu is already the highest in the Country.

The tax buoyancy witnessed in the second half of Tenth Plan may not continue

in the initial years of the Eleventh Plan due to the introduction of VAT from

2007. The growth is likely to slowdown considerably in the initial years and

then pick up in the later years. The other main sources of income like the

41

State Excise and Stamp Duties are expected to have reasonable growth during

the Eleventh Plan.

The above situation has also to be viewed in the light of the probable

impact of the Sixth Pay Commission. The own resource availability from the

State in the form of Balance from Current Revenue (BCR) is likely to be

adversely impacted due to the increase in the salaries and reduced growth of

taxes during the first half of Eleventh Plan and the resource projection has

been done taking these factors into account.

The State Transport Undertakings (STU) are not in a position to contribute

to the internal resource mobilization. The Tamil Nadu State Transport

Corporations have been rendering transport services at the lowest rates, when

compared to the tariffs prevailing in other states. A tariff revision was done in

2001 but this has since been withdrawn from 2004. Since, then, these units

have accumulated huge liabilities. Thus only a tariff revision can revive these

units, although in terms of operational parameters they can be termed as one

of the best in the country.

Tamil Nadu Electricity Board is one of the best state power boards in the

country. The Board has the best operational parameters in the country in

terms of lesser transmission losses, billing percentage and collection efficiency.

In spite of this, due to the absence of an appropriate tariff structure, the

Board has a negative contribution and is dependant on the State Government’s

budgetary support in the form of tariff compensation and share capital

assistance.

The contribution of Local bodies in Plan expenditure has been assumed

to be Rs. 260 crore with 10% growth. The borrowings projected are in line

with the fiscal targets set under the Fiscal Responsibility Act.

The Eleventh Plan outlay for Tamil Nadu is projected at Rs. 85,344 crore.

The overall plan resources will consist of:

(i) Rs. 17498.78 crore of State’s Own Funds.

(ii) Rs. 15873.19 crore as Central Assistance.

(iii) State borrowings to the tune of Rs. 55708.50 crore.

42

(iv) Negative Contribution of PSEs to the tune of

Rs. 5336.47 crore.

(v) Contribution of Local Bodies to the tune of

Rs. 1600.00 crore.

The various sub-components of the plan resources are provided in the

following Table 1.4. 4:

Table 1.4. 4

43

The total investment required for the Eleventh Five Year Plan period at2006-07 prices is estimated at Rs.649330 crore of which the state sectorinvestment is Rs.85344 crore.

The Central sector investment is required to the extent of Rs.128935crore constituting 20% of the total investment as against 18% of the projectedCentral Sector investment during Tenth Plan. The remaining investment ofRs.435051 crore is expected to flow from the private sector. This is to thetune of 67% of the total investment as compared to 66% in the Tenth Plan.

1.4.3. Externally Aided Project

External assistance has become an important component of Planassistance. The State has been availing assistance from External DonorAgencies since last two decades for the developmental projects in the State.Some of the major Donor Agencies extending financial assistance to the Stateare the World Bank, Japan Bank for International Cooperation (JBIC), DANIDAand Asian Development Bank. The assistance is generally extended to theState through Government of India. The Department of Economic Affairs (DEA)in the Ministry of Finance, Government of India is the nodal department forreceiving foreign assistance from multilateral/bilateral agencies and isresponsible for all policy issues pertaining to external aid received by theCentral Government. The DEA plays an important role in prescribing limits, ifany, for external borrowings (sector-wise or lender-wise), developing pipelineof projects, negotiating external assistance and monitoring implementation.

44

In course of time, the scope of the externally aided projects has widenedand the State has been able to create assets in the field of Energy, Irrigation,Roads, Health, Forestry, and Animal Husbandry etc. through such assistance.In spite of resource constraints, the State is able to take up a lot ofdevelopmental projects due to receipt of assistance from the Donor Agencies.The assistance for the Externally Aided Projects constitutes about 12% of thetotal plan outlay. The availability of external aid has enabled the implementationof several developmental schemes in the State.

At the beginning of the Tenth Plan, 7 Externally Aided Projects were inoperation in Tamil Nadu. During the Tenth Plan, 14 projects had beenlaunched. Totally, 21 projects were in operation during the Tenth Plan. Ofthem, 10 culminated in the Tenth Plan. The remaining 11 projects continuein the Eleventh Plan.

A. Externally Aided Projects that ended in Tenth plan

The list of Externally Aided Projects that were under implementationduring the Tenth Plan and ended during that period is furnished below:

Table 1.4. 5

B. Projects continuing in the Eleventh Plan 2007-2012

The list of Externally Aided Projects that were during the Tenth Plan andcontinue to be under implementation during the Eleventh Plan period isfurnished below:

45

Table 1.4. 6

C. Pipeline projects:

The list of projects in pipeline, that is under active consideration of theGovt. of India / funding agency and the proposals forwarded to the concernedMinistry in Government of India by the administrative department is given

below:

Table 1.4. 7

C.

46

1.5. Governance Reforms

NHhkš jhnd KobtŒJ« j§Foia¤

jhHh JP‰W gt®¡F

- FwŸ 1024

Who raise their races with ceaseless painNo need for plan; their ends will gain

- Thirukkural 1024

1.5.1. Introduction

Tamil Nadu has been following good public governance system for more

than 2000 years. The public governance has traveled through monarchy,

democracy and other forms and gained immense practical experience. With

this background, the Government of Tamil Nadu has to travel through the

modern 21st Century, which is marked by revolutionary scientific and

technological changes. Even in the Sangam Period, the public administration

had scientific division like Amaichar (Minister), Prohidhar (Advisor),

Senathipathiyar (Army Chief), Thoodhuvar (Ambassador), Saranar (Police),

Karanathu Iyalvor (Judicial Administrator), Karumathikkarar (Executive),

Kanagachutram (Financial Advisor), Kadaikappalar (Internal Security),

Nagaramanthar (City Police), Padaithalaivar (Head of Military), Yaanaiveerar

(Chief of elephant division) and Evoolimaravar (Soldier in horse-force)

functionaries. In the later Chola period, decentralized governance system was

designed and practiced. The public participation in governance was practiced

through formation of public committees to management irrigation systems.

Plato and Aristotle have emphasized that ethics based governance system

alone can render benefits to the masses. Abraham Lincoln said “…government

of the period, by the people, for the people, shall not perish from the earth”.

The legislature, judiciary and executive, if function within their limits, as laid

down in the Constitution of India, shall render “good governance”. Fundamental

right and duties and the directive principle are clearly enshrined in the

Constitution. The Constitution also mentions about human rights, equity,

social justice, political justice and economic justice. Following the principles

mentioned above, the governance system is designed.

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1.5.2. Players in the system

Governance refers to the system of decision-making and implementation

of the decisions. In the Government, this system includes the following

players and institutions:

(i) The democratic process of electing representatives, the

institutions of parliament, state assemblies, urban local

bodies and rural panchayat institutions.

(ii) The political parties and public administration, which

includes bureaucracy and service delivery mechanism.

(iii) Private commercial organizations, Non-Government

Organizations (NGOs), and international institutions like the

IMF, the World Bank, the WTO and the UNO.

(iv) The legal framework and mechanisms of delivering justice.

(v) The market system and interactions between the markets

and the State such as regulatory framework for markets,

public sector undertakings and public private partnerships.

1.5.3. Characteristics of Good Governance

Good governance should be participatory, consensus oriented, responsive,

effective and efficient, equitable and inclusive, transparent and accountable

and follow rules of law. Attaining these characteristics should be simultaneous

and synergetic.

Participatory governance requires democratic process, but does not stop

at that, as it is not always necessary that public representatives truly represent

the vulnerable sections of the society, hence a non-partisan civil service and

inclusive governance are essential. Inclusive governance requires the

participation of stakeholders in the design and implementation of the

programmes through well informed (using Right to Information Act) and

organized (such as Civil Society Organisations) public interaction with the

government.

48

The Government citizen interface has been sought to be institutionalized

through the mechanism of the citizen charter. The citizen charter has had a

chequered existence so far. The citizen charter has immense potential if

properly used. The experience gained across the State seem to suggest that

the charters in their present form have not been completely successful in

achieving the desired objectives. The primary objective of these charters is to

inform the citizens about the various facilities and services that are required

to be provided by the service provider to the citizen. The rights of the citizen

in seeking access and utilization of these services and the process/time limits

by which this is to be achieved are to be clearly spelt out. In fact, citizen

charters could also improve service delivery and reduce the extent of grievances

besides facilitating faster redressal of grievances which are all the goals of

good governance. After due considerations and deliberations, it is suggested

that the citizen charters, may be revamped in order to make them realistic

and enforceable.

There is a perception widely held that the citizen Government official

interface at the grass root level is neither pleasant nor rewarding. Instances

of non-availability of civil servants and lack of courtesy in public dealing by

the Government officials have been widely commented upon. Therefore

creation of a Call Centre system would be ideally suited to answer the basic

queries of the citizen, provide information and act as genuine facilitation centres,

thereby avoiding unpleasant and unproductive citizen official contacts. The

establishment of the Call Centre should be outsourced with due care to avoid

the pitfalls observed in the functioning of several Call Centre systems being

operated by private agencies.

Efficient governance should be responsive to aspirations of the people.

Transparent and accountable systems based on rules of law are ingredients of

efficient governance. For instance, corruption is misuse of public authority

for private benefit; transparent, accountable and inclusive governance would

weed out such problems and improve service delivery.

In order to achieve transparency in Government functioning, the

Government of Tamil Nadu has made good use of the internet. The Government

website contains information about various orders, programmes, schemes and

various facets of Government functions. Similarly, specific projects under the

National E-governance Plan and the Tamil Nadu State Wide Area Network

49

(TNSWAN), which promise to provide great bandwidth and dedicated

connectivity would serve the objective of improving transparency in governance.

It is important that the general public have access to important rules,

regulations and Acts in one convenient web site. The Government of India,

through the National Informatics Centre (NIC), have created a web site India

Code Information System (INCODIS) which is a repository of all Government

of India laws, rules and regulations. International experience also suggests

that this arrangement is very efficient. It is proposed to create an exclusive

website “TNCODIS” to post all extant statutes, rules and regulations of the

State Government, so that the public will have easy access to this information.

Urban local bodies and rural panchayat institutions are closer to the

people, making the governance responsible, effective and efficient. Therefore,

it is essential to strengthen this third tier of our federal government, empower

the local bodies with functions, functionaries and resources and build their

capacity in administration, planning and execution.

There is universal agreement about the need for transparency in public

administration and simplification of Government rules; the optional strategy

for attaining this goal is often a matter of debate. While the task of simplification

of rules and procedures are required across the length and breadth of

Government, but it has greater relevance and impact particularly in those

departments which provide service to the public having a strong public interface

such as water, health, electricity, civil supplies, education, registration and

urban municipal services etc. Therefore, the process of simplification of rules

and procedures should be carried out on a regular and continual basis in all

the departments. In order to make this effective, this process should be

systematically reviewed not only by the concerned heads of department but

by a full time institutional mechanism set up to ensure that appropriate

importance is given to this item of work.

Rules regarding tender procedure for procuring commodities for the

government and outsourcing of construction activities and services should be

made simple and a transparent method of selecting service providers and

suppliers of materials should be devised. Unregulated procurement systems

facilitate emergence of corrupt practices. Hence it is not surprising that the

world over the reforms in procurement procedures is a subject of regular

50

study. The Government of Tamil Nadu set up the Ramanujam Committee

(1997), which also considered the issue. Tamil Nadu passed the Transparency

in Tenders Act in 1997. The challenge in procurement is to institutionalize

good practices across the Government. In 2002, the Procurement Procedure

Cell was set up in the Finance Department which covers the complaint/

challenge appeal mechanism, issuing standard bidding documents, revised

accounts and public work codes, improving procurement procedures,

introducing code of ethics for officials, creation of level playing field and so on.

The experiences gained in the implementation of the Tender Transparency

Act suggest that it has been useful in ushering transparency in procurement

procedures. However, an element of rigidity has also crept in. The rigidity

slows down decision making and also does not provide the flexibility required

to tackle emergencies or changes in technology and curbs speed in execution.

Hence, the Act and Rules require to be constantly revised to ensure flexibility

and efficiency without compromising the transparency.

More recently, e-procurement and e-tendering has increasingly come

into use with potential for improvement in efficiency, reduction in transaction

cost and above all speeding up of the process of tendering. In particular e-

tendering can reduce the scope for restrictions in competition through non-

issue of tender documents. As e-tendering and e-procurement are efficient

systems, the Government should continuously streamline procurement

procedures in these systems.

Profound changes have also been taking place in the price discovery

mechanism and auctioning methodology. We need to evolve new practices of

price discovery in e-auctioning, which will help in securing competitive prices

imparting a greater measure of transparency besides enabling widespread

participation. This suggestion is worth examining for possible incorporation

in procurement practices. The experiences of on-line price discovery,

particularly, in stock exchange transaction points to the merits and efficiency

of such a system.

Financial accounting systems should be in line with the international

practices and publicized widely. The Policy Notes and Annual Financial

Statements of the government are the common documents available for public

consumption. Though, for the last few years, efforts have been taken to

51

create ‘performance budgets’, it is disappointing not all the government

department present the performance budget documents in the state assembly.

The performance budgets give accounts of financial and physical targets

achieved in a department. Now most of the countries have graduated to provide

‘outcome budgets’. The outcome budgets give the real effects of budgetary

policies of the government with reference to a sector. For example, the financial

outlay for Sarva Siksha Abhiyan (SSA) can be met and enrolment ratios can

be achieved, which are noted in the performance budget; the real outcome of

SSA is to improve the quality of literacy in terms of reading, writing and

arithmetic abilities of the students; thus, matching the real outcomes of a

scheme with the financial budget is the central aspect of outcome budget. In

2006-07, the Union Government presented outcome budgets of some

departments in the Parliament. This practice may be introduced in the State

as well.

As far as possible the information regarding on-going programmes,

schemes and projects in a government offices or public sector organization

should be publicly displayed at the office premises. The information boards

shall contain details regarding the type of service, the unit of delivery per unit

of time, the private and public cost of delivery. This information will motivate

the public to demand the services at right quality and quantity and make the

system accountable to the stakeholders.

1.5.4. Right to Information

The major obstacle to good governance is the lack of easy access to

information relating to Government from the stand point of the public. The

media is generally averse to disseminating development related information

lacking in ‘news value’ and such information is crowded out. One innovative

suggestion to this regard is that the State Government may consider

establishing dedicated media time exclusively for the purpose of disseminating

information about the State Government activities, programmes, schemes and

the entire gamut of information so as to ensure greater awareness, education

of the public and sensitise the public making them aware of their rights and

obligations in sum to ensure the attainments of good governance. Certain

States in India have begun experimenting with this concept. Another potential

area, which may be considered, is to make use of citizens radio. Public Service

messages whereby celebrities are involved have proved to be useful and greater

52

use of this technique may also help in advocating and publicizing the flagship

programmes of the Government particularly relating to poverty alleviation,

public health and the like.

In 1997, Tamil Nadu passed the country’s first Right to Information Act

(RIA). The Right to Information Act (RIA) has great potential to make governance

more transparent and accountable if it is properly used.

After the Union government notified this Act, many NGOs and individuals

have worked to institute the rights of individuals to get information from the

government, so that public administration is made transparent and effective.

The NGOs have used this Act to get information on public programmes and

their outcomes. Information Officers for each department should be appointed

to help the society to get the full benefits of this Act. The general public

should be oriented about this Act. There are a few drawbacks in the

implementation of this Act. Some people have been trying to extract

unnecessary information from the government. As not all departments have

adequate staff members to discharge the functions as per this Act, they are

over burdened, and the routine work gets affected.

The Foreign Direct Investment in India has increased in the globalization

era. The general public should get information about the functioning of these

institutions, it is suggested to formulate a legislation to ‘Whistle Blower Act’

in the USA.

However, the functioning of the RTI has not been altogether satisfactory.

In recent times, there has been a fresh attempt to strengthen the

implementation of the RTI Act. As required by the RTI Act, all the Departments

of the Government numbering around 150, are required to publish the names

of the Information Officer as well as the Appellate Authorities. The State

Government has also put in place the structures envisaged under the Act.

Advocacy and sensitization of the stakeholders about the RTI are being carried

out at several levels including the RTI Commission.

While the potential gains from the effective implementation of the RTI

Act are numerous, the actual realization of its objectives are dependent upon-

53

(i) The sensitization and commitment of the civil servants, greater

use of the internet for dissemination, transparency and access

of Government information to the public.

(ii) Fine tuning of procedural issues such as the quantum of fees

payable, the modalities of payment of fees by the seeker of

information.

In order to improve the functioning of the Act, the Government has to

address the following issues during the Eleventh plan period:

(i) Provision of specific budgetary allocations for the effective

implementation of the RTI Act for staffing, training, provision

of hardware and software and widespread publicity and

dissemination of information.

(ii) Simplification of payment procedures for RTI applications with

a view to make them user friendly, besides increasing the

options towards payment of fees.

The role of public sector in directly improving the economy is relegated to

the background; rather the state is considering itself as a promoter of social

and economic welfare of the oppressed sections of the society. The State

government cannot use tax as an instrument of redistribution as it has only a

few tax powers and most of the levied taxes are indirect taxes. Therefore, it is

essential to keep the oppressed sections of the society as the major target of

the public expenditure. Identifying the needs of these particular sections of

the society and designing and implementing schemes requires involvement of

the general public in such exercise. Decentralised planning and execution

assumes greater importance in this context. Mega infrastructure projects

which are essential directly to facilitate growth but indirectly to create

employment opportunities should be based on vital technical inputs and

innovative methods of financing. This requires cooperation between government

organizations and technical research institutes. Above all monitoring and

evaluation of schemes should be done both within the government organization

and by outside organizations. The reports of the Comptroller and Auditor

General of India and its scrutiny by the Public Accounts Committee should be

subjected to public debate.

54

While the success of any programme is as good as its implementation the

key to effective implementation lies in systematic Monitoring and Evaluation

(M&E), Experience in development programmes in India across States and

also cross country evidence seem to suggest that the Monitoring and Evaluation

(M&E) systems, critically influence the quality of the implementation in

programmes. Given the enormous resource constraint, the imperative of

improving effectiveness of the delivery systems, a sound M&E system is the

best way to ensure that the intended outcomes and impact of the development

interventions are actually achieved. Experiences in Externally Aided Projects

where a definite sum is earmarked for monitoring the evaluation has plausibly

contributed to better outcomes and impact. This should be factored into the

budget making process.

Appraisal and monitoring mechanisms for governance projects is

important. Also mandatory project grading and audit of e-governance projects

is desirable. Appropriate indicators should be developed for monitoring;

alternatively standard grading systems and packages in vogue should be used

for this purpose.

Sharing the learning experiences is vital for improved M&E design and

capacity. In this context, institutionalized arrangements for sharing best

practices may be considered and put in place. Appropriate emphasis towards

achieving this objective may be required in the Eleventh plan exercises. A

minimum provision, say half to one per cent, of any scheme may be earmarked

specifically for monitoring and evaluation process while designing the plan

schemes.

1.5.5. Capacity Building

While the need for capacity building in the Civil Service has been well

recognized, the actualizing of the need and the requisite support and vision

has been mostly lacking. Capacity building in Government is often restricted

to training. Training has been considered to be a major function falling within

the domain of the Department of Personnel and Administrative Reforms. The

Administrative Reforms wing of the Department has an elaborate mechanism

of training civil servants across various Departments. The Anna Institute of

Management is the premier agency discharging this onerous but vital function.

55

The following suggestions are made to strengthen the capacity and skills of

government functionaries.

(i) To revamp the training modules and make training relevant and

purposeful.

(ii) Professional skill sets are to be given to the employees to suit

the changing requirements.

(iii) A separate training department may also be considered to sub-

serve these objectives.

(iv) Web based training and satellite assisted training packages are

useful and would increasingly be required if the training is to

be taken to all layers of the bureaucracy. This method reduces

dislocation of the staff.

(v) Reference has been made earlier to the issue of transfers and

postings. Allied to the transfer policy is also fixity of tenure.

The concept of fixity of tenure has been receiving the attention

of several committees including the Administrative Reforms

commission (Moily Committee set up by the Government of

India), Stability of tenures in designated and key posts are

desirable, particularly, those relating to development, law and

order and improved social infrastructure schemes and projects.

In order to improve the efficiency of public administration all layers in

the Government from the top to the bottom must be covered by a regular

performance appraisal system with a view to recognize and assess performance

and possibly punish the non-performers. This will involve re-introducing

performance appraisal for the lower levels.

The avenues of career progression in the civil service are few, defined and

limited, while incentives are usually non-existent. As such as there is no

scope to reward star performance and exemplary performance keeping in view

the rigid rules of seniority and promotion policies in practice. There is a

debate about the objectivity of the proposal to recognize and reward efficiency.

56

One way of addressing this will be empowering competent authority viz.

Secretary/Heads of Departments to identify star performers to incentivise

outstanding performance in the formation of recognition both in terms of

certification and other monetary (and non monetary) incentives which would

improve the morale of the recipient and create role models for others to follow.

A caveat to the suggestion is that only a select few within the Department/

Office of the Department/Office would have to be selected at the sole discretion

of the concerned Secretaries/Heads of Departments. There is a risk of

arbitrariness but the risk is mitigated by the non-permanent/one-time nature

of the incentive which will not affect promotion or increments.

One of the touch-stones for measuring efficiency in decision making in

Governments is speed of the movement of files and decision making. Much

has been written about the subject ‘Red Tape’. In this context, an innovative

strategy for on-line monitoring and disposal of files, has been designed by

Government of Tamil Nadu in collaboration with the National Informatics

Centre. The project has been piloted in two departments of the Tamil Nadu

Secretariat viz. Planning, Development and Special Initiatives Department to

start with and the Department of Personnel and Administrative Reforms later

on.

Productivity and efficiency of the civil servants can be increased not only

by capacity building but also by providing an appropriate working environment.

Management literature abounds in example about the benefits that flow from

a congenial work environment, in terms of better productivity and improved

efficiency.

1.5.6. State Administrative Reforms Commission

After the formation of the new government in 2006, the state government

constituted the State Administrative Reforms Commission under the

chairmanship of Justice A.K. Rajan, former Judge of the Madras High Court.

This Commission includes ten experts from various fields. The Commission

shall give its recommendations pertaining to clean and transparent

administration, to remove delay and corruption in public administration and

to remove red-tapism.

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1.5.7. Governance in the Eleventh Plan

The schemes envisaged in the Eleventh Plan are sure to improve the

governance in Tamil Nadu through facilitating transparent and participative

public administration. The expenditure for these schemes is to be met from

plan and non-plan budget of the respective departments, Information

Technology Department and under Secretariat Economic Services.