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Transcript of Tamilnadu Budget
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TAMILNADU BUDGET 2013-2014
The Tamil Nadu government presented its Annual Budget in Assmebly onThursday. It was a tax free budget that is bound to have happy takers.However, no new announcements or schemes were made for education.
State Finance Minister O. Paneerselvam said that the coming years projectedrevenue surplus would be Rs. 664.06 crores and the fiscal deficit will be Rs.22,938.57 crores. He also announced that two new cancer centres will beopened in Tirunelveli and Thanjavur, and operation theatres will be upgradedin district headquarters hospitals.
Highlights -Tamil Nadu State Budget 2013-14
- Rs 21,000 cr for new Power Plant Projects
- Rs 880.69 crore for Environmental- Rs 16,965 cr for School Education- Rs 6,452 cr for Road Highways. Chennai-Mamallapuran road to be made 4-way- Rs 271.68 Crore for 4 new flyovers in Chennai- Rs 2000 crore for infrastructure- Rs 4,900 crore for Food Subsidy through Ration Shops- Rs 250 crore allotted to distribute 12,000 free cows, 6 lakh free goats towomen this year- Rs 750 crore for Metro Rail- Rs 32.5 cr to set up 7 new Rice Mills- 2 lakh Free house land pattas to be distributed in 2013-14- Aadhar Linked schemes to be implemented throughout the state- Rs 5,189 crore allotted for Agri sector. up Rs 1,385 crore from last year- Drought Relief of Rs. 15,000 per acre to benefit nearly 3 lakh farmers. Tocost Rs 541 crore to Govt- Rs 15.85 crore foe Animal Husbandary- Rs 5 crore to develop skill of youth- Aadhar Linked schemes to be implemented throughout the state- 9914 vacancies filled in Cooperative societies- Rs 695 Crore for judiciary- 17,000 vacancies to be filled in Police Dept- Rs. 4,706 crore for Polce Dept- Rs. 208 Cr for Fire Dept- Rs 50 crore allotted for Police Station building infrastructure
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TAMILNADU BUDGET 2014-2015
Tamil Nadu Legislative Assembly for the 2014-2015 fiscal year budget(Budget) was tabled today by the Minister of Finance, Mr. O. Panneerselvam.The main features:
2014-15 - the budget allocation for the year increased to Rs.42,185Crores
Rs.16,021 millions has been allocated for pension benefits. Pottery workers providing livelihood assistance of Rs.4,000 . Rs.751.09 Crore earmarked for projects to help the wedding. Rs.17,731.71 crore allotted for provision of free quality education for all
school children including health aspect. Monthly allowance will be increased to Rs.1,500 for people with
disabilities. Solid waste management in rural areas, Rs.200 crore Road infrastructure and increased funding of Rs.2,800 crore. Rs.198.25 Crores for beneficiaries of sheep, goats. Rs.242.54 crore as crop insurance. Commencement of Public Service at 200 centers in the city of Chennai
and other municipal corporations, municipalities. . 36,233 Centers for free supply of cooking stove & cooking gas
connection, grinders, fans. 118 primary health care centers, Hospitals and 64 primary health
centers to be upgraded. Housing Board Apartments for the poor in Chennai, Erode, Coimbatore,
Madurai, Trichy Rs.100 crore allocated for solar energy projects. 60 thousand to
Rs.46.58 crore to set up solar power street lights. 1,260 crore toRs.60,000 green homes with solar power allocation.
4,887 Village Administrative Officers will be given laptops. Disaster preparedness program will be allocated Rs.106.29 crore. Law and Order: Rs.5,168 million increase in funding for the police
department.
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Ahead of 2014 Lok Sabha elections, theTamil Nadugovernment today presented a tax-free
and revenue surplus Budget. Thestate governmentalso announced a few initiatives to ease
pressure on the common man.
This Budget is yet another firm stride in our march towards growth and prosperity, said
Finance MinisterO Panneerselvamin his Budget speech at the state Assembly.
The state administration had been striving hard to ensure equitable growth. However,
failure of the Centre to stimulate growth and improve the failing macro-economic
environment continued to adversely impact the investments and economic growth
consecutively for the second year, he added.
ALSO READ:Tamil Nadu increases food subsidy to Rs 5,300 cr
Adherence to the Tamil Nadu Fiscal Responsibility (TNFR) Act target without impinging on
the states ability to invest in critical sectors has, thus, become a daunting task, he said,
adding though there were signs of revival, with the state's economic growth expected to
exceed five per cent in 2013-14, massive efforts were needed to put the economy back on
the path of accelerated growth.
As a positive sign, the power situation had improved significantly in the state and industrial
growth was showing recovery, he said.
With the proposed investment of Rs 42,185 crore under Plan schemes in 2014-15, the Plan
expenditure will cross Rs 107,000 crore as against the overall 12th Plan target of Rs
211,000 crore.
The estimated revenue surplus in 2014-15 would be around Rs 289.36 crore and guided the
state would continue to maintain a surplus in 2015-16 and 2016-17. Total revenue receipts
are estimated at Rs 1,27,389.83 crore in 2014-15.
ALSO READ:TN Govt allocates Rs 200 cr for monorail project
Fiscal deficit for 2014-15 is estimated at Rs 25,714.31 crore (2.73 per cent of the GSDP).
However, the fiscal deficit -gross state domestic product ratio -- would be 2.70 per cent in
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2015-16 and 2.67 per cent in 2016-17.
The continued economic stagnation has also caused a substantial shortfall in the states
projected tax revenues, he said.
The states own tax revenue was pegged at Rs 83,363.21 crore as per the revised estimates
of 2013-14. It is estimated to increase to Rs 91,835.35 crore in the Budget Estimates for
2014-15.
This would mean a growth of 10.16 per cent. The states own tax revenue - GSDP ratio for
2014-2015 will be 9.75 per cent as per BE 2014-15. A growth rate of 13.13 per cent is
assumed for 2015-16, he said.
The non-tax revenue was estimated at Rs 8,083.98 crore in the BE 2014-15. Since there
was very limited mining potential in the state and most of the government services are
delivered free of cost or only at nominal rate, non-tax revenue is estimated only marginally
higher than the Revised Estimates 2013-14. A growth rate of 2.26 per cent is assumed for
2015-16 and 10.40 per cent for 2016-17.
The state had recovered in the last two years from the revenue deficit of 2010-11. With
prudent fiscal management, the state would achieve all the targets set by the 13th Finance
Commission during 2014-15 and would also be able to maintain the same success in the
future, said Panneerselvam.
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Food subsidy
The state government has increased food subsidy to Rs 5,300 crore. Besides, it has decided
to launch low cost pharmacy chains.
Panneerselvam said this year food subsidy had been increased to Rs 5,300 crore from Rs
4900 crore in 2013-14, which was later revised to Rs 5,000 crore.
Besides, it had been supplying essential products like rice, dal, pal oil and others through its
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public distribution scheme (PDS) and had also opened low-cost canteens, low-cost food and
vegetable shops.
He said, already 210 medical chains were being operated by state co-operatives and
another 100 would be opened. Besides it was decided to launch Amma Pharmacy. These
medical shops run to ensure the sale of medicines at reasonable prices to the public. A sum
of Rs 20 crore will be used from the Price Stabilisation Fund, he said.
The state government currently operates 297 Amma canteens, where idly is served for Re 1
and a variety rice for Rs 5 across the state.
Rs 200 crore for monorail
The government has allocated Rs 200 crore for the proposed monorail project in the state.
The bid process was in progress, the minister said.
The estimated length of the project is 20.68 km and the estimated cost is $522 million
(around Rs 3,235 crore). The project will be taken up through public, private partnership
(PPP), on design, build, finance operate and transfer (DBFOT) basis.
Realty slowdown hits revenues
Slowdown in the real estate sector has impacted revenue from registration and stamp duty,
said Panneerselvam. However, tax income from the sale of alcohol gave a helping hand.
To assess the slowdown in the real estate sector, we have only the tool of stamp duty and
registration and it has seen a fall of 10 per cent, said K Shanmugam, principal secretary,
Department of Finance.
The minister, in his speech, said, In accordance with this low growth, the estimates have
been reduced by Rs 652.24 crore in the Revised Estimates 2013-14. In the Budget
Estimates 2014-15, the revenue from registration and stamp duty is estimated to be Rs
10,470.18 crore, assuming a growth of 13.54 per cent.
In a press conference later, he added, the general sentiments is that the sector would pick
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up now. The supply side is doing well, but the demand has to pick up.
The modified target for commercial taxes for 2013-14 was Rs 64,626.46 crore, which has
now been downsized to Rs 61,891.74 crore in the Revised Estimates of 2013-14. Similarly,
the target for excise revenue was modified after the streamlining of excise duty. Thus, the
original estimate of Rs.14,469.87 crore has been revised to Rs 5,868.65 crore in the
Revised Estimates 2013-2014.
Assuming a 10.47 per cent growth, the estimated excise revenue in 2014-2015 will be Rs
6,483.04 crore, the minister said.
Rs 50 crore Cotton Cultivation Mission
The state announced its plans to launch Cotton Cultivation Mission to increase the
cultivation of cotton to 600,000 acres in the next five years. The Southern India Mills
Association (SIMA) welcomed this stating this would go a long way in reaching self-
sufficiency in cotton production.
As the production of cotton within the state was inadequate, an ambitious Tamil Nadu
Cotton Cultivation Mission will be launched in the state with an initial outlay of Rs 5 0 crore.
Cotton is at present cultivated in the state in 334,000 acres, with a production of 400,000
bales. There are 1,948 spinning mills functioning in the state with an annual requirement of
11 million bales.
T Rajkumar, chairman, Sima, said it was timely as the textile mills in the state were
spending huge amount towards transportation of cotton from upcountry states and selling
the cotton yarn in the same markets.
The industry also expressed happiness in wind power evacuation, as the sector suffered
considerably during the current wind season due to partial non-evacuation of wind power.
Inclusive and growth-oriented: SICCI
The Southern India Chamber of Commerce & Industry (SICCI) welcomed the decision to
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increase crop loans to Rs 5,000 crore and provision of Rs 200 crore as interest subvention.
Other proposals like green energy corridor for evacuation of wind power, pharmacies that
sell medicines at reasonable prices and Chennai City Transportation System to link all
modes of transport were timely, said Jawahar Vadivelu, president of SICCI.
Besides, creation of a special purpose vehicle to implement the Madurai-Thoothukudi
Industrial Corridor was a step in right direction, he said.
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