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Palanivel Thiaga Rajan loses Finance, but in rejig, Stalin Cabinet seeks to maintain balance

DMK leaders say Palanivel Thiaga Rajan not being “punished” for leaked audio tape, expected to do equally well in IT; minister who impressed in Industries portfolio gets Finance now

PTR loses Finance, but in rejig, Stalin Cabinet seeks to maintain balanceTop DMK leaders insisted the change in Palanivel Thiaga Rajan's portfolio wasn't a “punitive” measure. (File photo)
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IN HIS second reshuffle since taking over as Chief Minister in 2021, M K Stalin on Thursday stripped the crucial Finance portfolio from high-profile minister Palanivel Thiaga Rajan, who had won as many admirers for his handling of the department as for his articulation of the same.

As reported by The Indian Express first, the changes saw Rajan being moved to the Information Technology and Digital Services portfolio. Thangam Thennarasu, another top-performing minister, was moved from Industries to Finance.

Rajan’s removal followed the release by Tamil Nadu BJP president K Annamalai and a Chennai whistle-blower of an audio tape, which purportedly featured him speaking about corruption by Stalin’s family members.

While Rajan had denied it was him on the tape, speculation had been rife about him facing the axe since its emergence.

On Thursday, top DMK leaders insisted the change in Rajan’s portfolio wasn’t a “punitive” measure. A senior DMK minister said that given Rajan’s “track record”, the DMK leadership was confident of him delivering exceptional results in his new role too. However, he said, the move definitely had an aim: “Rajan is being given one more chance; it’s not a punishment. And this serves as a message to all ministers: focus on your duties and avoid unnecessary controversies.”

Rajan would have found few Cabinet colleagues standing up for him, having reportedly rubbed senior ministers such as K N Nehru and Duraimurugan the wrong way with his “unwavering” approach to managing the state’s finances.

State government employees, particularly teachers, for example, have been demanding regularisation of 10,000 part-time teaching jobs, filling up of vacancies in many departments. But Rajan has blocked this, taking a purely reformist view. A DMK MLA said Rajan’s stubbornness had led to friction within the Cabinet and bureaucracy.

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The new portfolio of IT might also be up Rajan’s street, given his skills, industry connections and his training as an economist. In a statement, he said he hoped to use his role to attract more investments, catalyse job creation, and ensure growth to re-position Tamil Nadu as a leading IT state.

The selection of Thennarasu as the new Finance Minister will go down well in DMK ranks, given his impressive record as a politician and as Industries Minister (he regularly featured among the top five performers in Stalin’s Cabinet).

In the previous DMK Cabinet of M Karunanidhi, Thennarasu had served as Education Minister.

In his new role, Thennarasu’s main task will be addressing the state’s tenuous financial situation – a problem that Rajan had attempted to tackle during his tenure – while taking everyone along.

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The DMK MLA quoted above said: “We are hopeful that Thennarasu, known for his efficiency, political experience and affable nature, will strike a better balance in managing expenditures and clearing funds.”

In the other change in the Stalin Cabinet, T R B Rajaa, the son of senior DMK leader T R Baalu, was appointed as Industries Minister, replacing Thennarasu.

The prime portfolio is seen as a recognition of Rajaa’s patient wait. The relatively young three-time MLA from Mannargudi is an engineering graduate.

“Rajaa’s performance will be closely assessed. We see this as an opportunity for him to gain experience, similar to Anbil Mahesh (another young member, who holds the Education portfolio in the state),” the DMK leader said.

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T Mano Thangaraj, formerly in charge of IT and Digital Services, will now be the Minister for Milk and Dairy Development, a department that was held by S M Nasar, who has been dropped from the Cabinet. M P Saminathan, the Minister for Information and Publicity, will now additionally oversee the Tamil Official Language and Tamil Culture Department.

Soon after the changes, Rajan wrote a long post on Twitter, thanking Stalin for the opportunity to hold the Finance portfolio for two years. Talking about his tenure, he said: “I presented one revised budget (’21-’22) during the pandemic, and two annual budgets (’22-’23, ’23 -’24) post-pandemic. Despite inheriting record deficits and debt ratios, we have invested in a record number of social welfare schemes as well as record capital spending, all while delivering record-setting fiscal improvements.”

Given the friction with his colleagues, Rajan interestingly added: “While fiscal consolidation and social spending are necessary steps for an equitable society, the drivers of development and growth are investment, enterprise expansion and job-creation.”

Opposition leader Edappadi K Palaniswami said corruption had forced Stalin to reshuffle his cabinet. “The government seems to have been shaken by a single audio clip talking about corruption in the DMK first family,” he said.

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