Covid-19 has slowed industrial growth, says O Panneerselvam

CHENNAI: Deputy chief minister O Panneerselvam on Tuesday said in the assembly that the ongoing restrictions such as shutting industrial and commercial establishments in view of Covid-19 outbreak has affected economic growth of the state. Replying to the demands for grants for finance department, Panneerselvam said all establishments were affected in industrial towns like Chennai, Coimbatore, Erode, Tirupur, Salem, Madurai and Tuticorin. Exports of textiles, garments and machineries are hit. Exports and imports are affected by the curbs in international freight services. Vehicular movement is also totally hit, he said.The Union government listed three districts - Chennai, Kancheepuram and Erode - which reported confirmed COVID-19 cases for lockdown. But the state government chose to go for complete lockdown till March 31, he said. (PM Narendra Modi, later in the evening, announced 21-day nation-wide lockdown starting from midnight on Tuesday).Pointing to the budget already presented by him for the next financial year and the tabling of revised estimates, Panneerselvam said none could foresee the spread of virus and its impact on the economy. Since the industrial sector was affected, there could be chances of reduction in collection of related revenue such as GST, sales tax, corporate tax, state excise duty, stamp duty and registration fee. There could even be slide in non-tax revenue of the government."Even in this extraordinary situation, the government holds the responsibility to implement the welfare measures and spend towards capital expenditure without any downside," he said. He assured the House that there would be adequate allocation under the state disaster relief fund and other heads to contain the virus. The government would execute all developmental works to regenerate the growth of industry from the slowdown. There would not be any decline in fund allocation. It would take all steps to promote development without any financial constraints. It would maintain the estimated expenditure as envisaged in the budget and provide financial resources without any change to the already announced schemes of the chief minister and the council of ministers, he said.