Chennai, The Tamil Nadu government on Saturday said it has set up a high-level committee, headed by former RBI Governor C. Rangarajan to look at the fiscal challenges being faced by the state and the way forward in the context of Covid-19.

According to the government, the committee comprises economists, industrialists, vice chancellors, bankers, government officials and others.

The committee's terms of references are:

* Assess the overall immediate and medium-term impact of Covid-19 on different sectors of the Tamil Nadu economy, including impact of the lockdown, additional costs and implications due to social distancing and other precautionary measures;

* Assess opportunities and threats in the short and medium term;

* Measures required to help important sectors of the economy to overcome Covid-19 pandemic;

* Identify specific reform measures to be taken by the state government to support the growth of important sectors of the economy;

* Asses the Covid-19 impact on the state government's fiscal situation, the way forward to improve it, including increasing the tax: Gross State Domestic Product (GSDP), diversifying revenue source and repriotising expenditure;

* The issues the state government should take up with the Central government

* Identify possible source of financing and funding for different sectors, including infrastructure projects, small businesses and other enterprises.

According to the government, the committee will submit its final report within three months and may also submit an interim report as it may deem fit.