Tamil Nadu sets car purchase ceilings at ₹26 lakh for Ministers and Speaker
GS2Polity · Governance · IR· Transparency, accountability & RTI· Prelims·
Fiscal discipline and public procurement: a GS2 Governance case study on legislative expenditure.
Why in news
The Tamil Nadu government amended the Tamil Nadu Legislative Assembly Travelling Allowance Rules to cap car purchase prices for Ministers and MLAs to ensure fiscal discipline.
Background
The amendment sets a ₹26 lakh ceiling for Ministers and key leadership roles (Speaker, Deputy Speaker, Leader of the Opposition, Chief Government Whip) and a ₹15 lakh ceiling for other MLAs. Vehicle prices are subject to a 5% annual increase via the Government e-Marketplace (GeM).
Facts for Prelims
- FactCar purchase ceiling for Ministers and Speaker in Tamil Nadu: ₹26 lakh
- FactCar purchase ceiling for other MLAs in Tamil Nadu: ₹15 lakh
- FactAnnual price increase for vehicles: 5%
- PostDistrict Collectors: Responsible for vehicle maintenance and ownership management
Prelims practice question
With reference to the Tamil Nadu Legislative Assembly Travelling Allowance Rules, consider the following statements:
- The car purchase ceiling for other MLAs is set at ₹15 lakh.
- Vehicle prices are subject to a 10% annual increase via the Government e-Marketplace.
- The car purchase ceiling for Ministers and the Speaker is set at ₹26 lakh.
Which of the statements given above is/are correct?
- (a)2 only
- (b)1 and 2 only
- (c)1 and 3 only
- (d)2 and 3 only
Show answer
Answer: (c) 1 and 3 only — Statements 1 and 3 are correct. Statement 2 is incorrect: The note states prices are subject to a 5% annual increase.
For Mains
Q. Discuss how institutionalizing price ceilings and procurement through digital platforms like GeM can enhance transparency and fiscal accountability in state-level legislative expenditures.
Dimensions to cover in your answer
- Fiscal discipline: Curbing discretionary spending on high-value assets to optimize public exchequer utilization
- Digital oversight: Leveraging GeM to standardize procurement and reduce leakages in state-level logistics
- Accountability framework: Defining clear maintenance and ownership protocols through District Collectors
Keywords: Fiscal discipline · Transparency · Public procurement · Accountability · Legislative expenditure
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