The Tamil Nadu Fiscal Responsibility Act aims to:

The correct answer is: Control government borrowings.

The Tamil Nadu Fiscal Responsibility Act (TFR Act) is a law that was passed in 2003 to control the state government’s borrowings. The Act sets limits on the amount of money that the government can borrow each year, and it also requires the government to publish a report on its fiscal performance every year. The TFR Act has been successful in reducing the state government’s debt burden, and it has also helped to improve the state’s credit rating.

The other options are incorrect because:

• Increasing tax rates would not necessarily help to control government borrowings. In fact, it could lead to a decrease in tax revenue, as people and businesses may choose to spend less money if they are taxed more.
• Reducing public expenditure would also not necessarily help to control government borrowings. In fact, it could lead to a decrease in economic activity, as the government would be spending less money on things like infrastructure and education.
• Expanding welfare schemes would also not necessarily help to control government borrowings. In fact, it could lead to an increase in government spending, as the government would be providing more benefits to people.