The budget documents are prepared in such a way it deceives even educated auditors. Even they don't know the whole truth behind the Tamil Nadu budget!. As I have explained earlier, the TN Govt is spending nearly 50% of its revenue just for about 12 Lakh employees during the last 4-5 years. Only remaining 50% is spent for the 7 crore population!. The Govt. employees have strong unions. Its very difficult to bring down their salaries and perks right away. Only a carrot-stick approach can help. A strong political will is required to bring reforms in Govt Service Responsibility Act to offer services to people on a pre-determined period, expressed in days, for all Govt services. Unions, will reject such rules. Downsizing the staff, and improving performance is another way to bring down Employee expenses. Introduction of performance based salaries should not be ruled out for Govt. employees. The govt expenses for employees should be brought below 10% of Govt's revenue on long term basis. In short term, it should be at least brought down to 25% in the next 5 years. If not, Tamil Nadu can not compete with states like Gujarat, where Govt expenses for employees were only 17% in 2013-14 budget.
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