The TVK-led Tamil Nadu government on Wednesday, August 5, announced a series of procurement and administrative reforms in its Budget Estimates, including the removal of mandatory submission of what it described as "unnecessary certificates" by contractors in public tenders, in a bid to improve transparency in the tendering process.
Under the new policy, contractors registered with any government department will be eligible to participate in tenders floated by other departments, subject to the prescribed pre-qualification criteria.
The government also said it had relaxed eligibility norms for low-value procurements to encourage first-time bidders, including young entrepreneurs and small businesses.
In an apparent swipe at the previous DMK government, the Budget stated that "tender estimates earlier cornered by a few individuals and political parties have been stopped and directed straight into the State exchequer."
The government further announced that planning permission for multi-storeyed and high-rise buildings would now be granted at the level of the Chennai Metropolitan Development Authority (CMDA) through delegated powers. It said the move was aimed at streamlining approvals and eliminating corruption that had allegedly prevailed under the earlier system.
The Budget also highlighted the state's fiscal position, stating that Tamil Nadu's outstanding debt had nearly doubled over the past five years to around Rs 10 lakh crore, as detailed in the government's White Paper on Financial Management.
According to the government, the state now lags behind its peer states on key fiscal indicators, including its own tax revenue as a proportion of Gross State Domestic Product (GSDP), revenue deficit and fiscal deficit, leaving limited fiscal space for launching new welfare and development schemes.