The committee headed by former Governor of Reserve Bank of India (RBI) Rangarajan has, on Monday, tabled its report to Tamil Nadu Chief Minister Edappadi Palaniswami to revive the state's economy from the adverse effect of the COVID-19 pandemic. 

In the report, the committee has recommended the state government to completely lift the lockdown and restrictions and to spend Rs 10,000 crore over and above the budgeted amount on the capital expenditure for reviving its economy. The committee has also recommended the government to push Rs 3,200 crore construction sector funds that are remaining intact towards resuscitating the ailing economy.

The committee, which is pooled with notable industrialists, had suggested the state government to look for other ways to curb the spread of the COVID-19 viral infection instead of imposing lockdowns and restrictions and it also has estimated that the maximum economic growth that is possible for the state during the 2020-21 fiscal year is 1.71%. The committee has also pressed that government that the state would be having a pre-COVID-19 situation in two months if the recommendations are followed. 

It has further suggested the government to spend Rs 5000 crore on expanding the healthcare infrastructure in the state and for treating the COVID-19 patients. In its report, the committee has also recommended the government to continue its relief measures by providing free rice to people even after November and advised the government to frame the employment guarantee scheme for the urban areas on the lines of the Mahatma Gandhi National Rural Employment Guarantee Scheme. 

By citing that it's not sure how much the state of the economy would decline, the committee stressed that the government would unavoidably be levied with the burden of more debts. The committee has also suggested the government to pump an additional capital of Rs 1,000 crore in the state-owned Tamil Nadu Industrial Investment Corporation (TIIC). 

The state government has installed the committee headed by former RBI Governor in May 2020 to advise and recommend the government with the short and medium-term measures to revive the broken economy in the wake of the COVID-19 outbreak. Headed by Rangarajan, the committee comprised of 24 members, and the state Chief Finance Secretary was appointed as the coordinator of the committee. 

Some of the members of the committee include India Cements Chairman Srinivasan, TVS Chairman Venu Srinivasan, CEO of Equitas Bank Vasudevan, MD of Indian Bank Padmaja Chunduru, IIT Madras Professor Suresh Babu, and Former Chief Secretary Narayanan. According to reports, by receiving the recommendations, Tamil Nadu Chief Minister Edappadi Palaniswami said that the government will implement the recommendations of the committee to revive the state's economy and to ensure the growth of the state. The reports say that the Chief Minister might face a new challenge in reviving the economy as per the recommendations amid the prevailing deficits and the committee has also signaled that the government's deficit may go high with more debts during the fiscal year and as the state nears the legislative elections, the Chief Minister would be pushed to meet the challenges in fixing the ailing economy and generating employment in the state.