CM refutes AIADMK remarks

Chennai, Jan 27 (UNI) Tamil Nadu Chief Minister M Karunanidhi today pooh-poohed the opposition AIADMK's campaign that the state was heading towards bankruptcy by implementing a slew of freebies and asserted that the financial position was comfortable.

Replying to the week-long debate on the motion of thanks to the Governor for his address to the House, the Chief Minister said the financial position was comfortable, not withstanding implementation of various welfare schemes and implementation of Value Added Tax (VAT) from January one.

He said the total revenue of the state in the first nine months of this current fiscal had gone up by 20 per cent compared to the corresponding period last year. The total revenue in the last nine months had reached Rs 24,548 crore and the government had so far spent Rs 23,594 crore, he said.

Mr Karunanidhi said even after earmarking financial allocations for all major welfare schemes, the government ensured that the fiscal deficit was well within three per cent of the Gross State Domestic Product (GSDP), as prescribed in the Fiscal Management Act.

''The government is not in a position to go bankrupt and those who wished that the government would go bankrupt would be disappointed,'' he said adding the government would continue to implement welfare schemes for the people.

UNI