Madurai DMK leader and Tamil Nadu IT minister Palanivel Thiaga Rajan, who previously held the finance portfolio, discusses the impact of government spending on social security, actor Vijay’s political entry and more in an interview with The Hindu. Edited excerpts:
Critics argue that growing social obligations are putting a strain on state finances. How do you justify this model?
The recent debate on this started when the Prime Minister (Narendra Modi) went on TV and said that there is a “revdi culture”. Even when I was an MLA, I had detailed discussions explaining that not all social or welfare spending—whatever label we use, including “freedom”—can be categorized in the same way. Some expenses should be seen as investments in human development, such as providing midday meals or providing laptops to students. Others function more like social protection or insurance schemes—for example, health insurance subsidies, marriage assistance, or free rice for the poor.
Therefore, it is important to distinguish between different types of welfare and assess which ones actually add value. In fact, I gave a specific example of what I think is a poorly designed system: providing ₹25,000 per woman to buy a scooter or two-wheeler. This is contrary to the broader political goal of supporting public transport. Tamil Nadu already has a significant imbalance of around 2.9 million registered two-wheelers against around 2.3 million ration cards. The effectiveness of such schemes depends on their design, intent, execution and context. For example, in remote areas where there are no buses, promoting access for two-wheelers may make sense. But in a state like Tamil Nadu – one of the most urbanized in the country, with more registered two-wheelers than families and an underutilized public transport system – the same policy may not be appropriate.
If the government only focuses on social spending, you will see an immediate improvement in consumption, but there will be no long-term economic benefits. In a state like Tamil Nadu, where private consumption is a significant part of the economy, increased transfers – such as the Kalaignar Magalir Urimai Thogai (a monthly entitlement of ₹1,000 for female heads of household) and similar schemes – can boost consumption in the short term.
How do you feel about actor Vijay’s entry into politics?
As someone who believes that democracy is the best model of a republic, I welcome anyone who enters the public sphere and is willing to stand before the people and seek their approval. I welcome new participants and new ideas. If the participant is a very popular actor, it’s even better. Why even better? Because the people least engaged in politics are young people. By definition, older people have fewer years ahead of them, while young people have decades ahead of them. So anything that increases youth engagement in politics is a good thing from my point of view. Ultimately, people will vote for who they believe to be reliable, experienced and effective. If he is a serious politician, I hope he is here for the long term. Even Perarignar Anna (former Chief Minister CN Annadurai) said that even for a strong government, a strong opposition is a good thing.
What DMka, will it get younger?
I think the party is changing – especially after the Deputy Chief Minister (Udhayanidhi Stalin) led to significant changes. This shift is attracting a lot of young people to the side, which is good because it was something that was sorely lacking before.
As a legislator for your Madurai Central constituency, what tangible changes have you made in the last five years?
Every six months I issue a detailed micro-level report – covering every individual, every household and every applicant for every program. I have made three key commitments in 2021: completing the drinking water system; improvement and completion of underground drainage (UGD); and conducting the long-delayed Madurai Meenakshi Amman Temple Kumbabhishekam. The first was achieved. Today, the city of Madurai has more drinking water than it needs. Even recently there were reports that the Madurai Commissioner is considering not taking water from the old Cauvery system as we have about 12 million people and 130 LPCD (litres per capita per day). At this point, the macro is done working on it. However, the problem now lies at the micro level – laying pipes in every home and modernizing distribution systems.
The UGD project turned out to be much more complex. It was initially launched in 2010 under the then AIADMK mayor, now MLA, Rajan Chellappy. The existing infrastructure is inadequate and in particular the master plan for Madurai’s rainwater and UGD systems dates back to 1908 during the British era and has not undergone any major re-evaluation thereafter. Upgrading integrated systems such as storm water drainage and underground drainage is extremely challenging, especially ensuring that the two systems do not mix. Once they do, especially during monsoon waves, the situation becomes unmanageable.
During my tenure as Finance Minister, I allocated funds and initiated surveys to prepare Detailed Project Reports (DPRs). We now have two DPRs – one for a fully integrated UGD system, including several sewage treatment plants, and the other for a separate stormwater management system, including canals. For a city like Madurai, these are long term projects of 20-30 years. The first phase is to start soon and tenders have already been announced.
As for the Kumbabhishekam temple, work is progressing. The mandapam (which was damaged by fire) will open soon. We obtained pillars from a quarry in the Rasipuram area that matched the original stone of the temple, enabling us to carry out the restoration properly.
