Populist budget presented in Tamil Nadu
Mar 23, 2007 - 6:57:30 PM
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Indian-made foreign liquor - too will be dearer as a 4 percent tax has been levied on molasses.
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By IANS,
[RxPG] Chennai, March 23 - Tamil Nadu Finance Minister K. Anbazhagan played to the gallery while presenting the state's budget for 2007-08, with several concessions for farmers including loan write-off and crop insurance schemes.
There were also a slew of additional freebies and several concessions favouring students and housewives. The largesse, however, stopped there and the finance minister imposed a four percent tax on industries.
These measures resulted in the state budget leaving an overall fiscal deficit of Rs.78.00 billion constituting 2.84 percent of the gross state domestic product.
The total revenue receipts were estimated at Rs.445.32 billion and total revenue expenditure at Rs.446.33 billion, leaving a revenue shortfall of Rs.1.01 billion.
To ease the difficulties faced by city commuters Anbazhagan announced a Rs.90 billion metro rail project as part of the mass rapid transport system which would stretch over a distance of 49 km.
The government employees, often seen to be favoured by the DMK regime, got a six percent dearness allowance hike with retrospective effect from Jan 1 this year, while their leave travel concession was restored and their festival advance doubled from Rs.1,000.
Co-operative farm loans will be cheaper, down to five percent from the existing seven percent. Farmers will also find chemical fertilisers and seeds less costly since they have been exempted from the value-added tax -.
Students have a lot to rejoice since pencils, ballpoint pens, ink, notebooks, and other implements like geometry boxes and school bags will be cheaper in the state. The cover of free education has been extended up to the university level by doing away with tuition fees in government colleges.
Kerosene pressure stoves, pillow covers, bed sheets, towels and refined oil are other items that have been exempted from VAT.
The tax on unbranded coffee powder, masala powders and unbranded ghee has been reduced by 8 percent.
Keeping the middle-class in mind, Anbazhagan reduced the tax on used cars as well.
The textile belt in southwestern Tamil Nadu stretching from Salem, encompassing Erode and Tirupur and ending in Coimbatore is hit as textile machinery and industrial gases will attract 4 percent tax.
Indian-made foreign liquor - too will be dearer as a 4 percent tax has been levied on molasses.
A provision has been made for creating a Special Economic Zone - in the backward Virudhunagar district. Two shipyards will be built in Chennai and Cuddalore at a total cost of Rs.37 billion.
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