Southern States - Tamil Nadu   

Ponnaiyan emphasis on reform priorities

By Suresh Nambath

CHENNAI MARCH 21. As the entire Opposition staged a walkout in the Assembly, protesting the reforms path taken by the State Government, the Finance Minister, C. Ponnaiyan, today sought to integrate ``reform priorities'' with ``development imperatives'', targeting subsidies and restructuring public sector enterprises.

Facing empty Opposition benches, Mr. Ponnaiyan, unveiled in the Tamil Nadu budget for 2003-04, measures to mobilise additional resources of Rs. 430 crores, leaving an uncovered deficit of Rs. 865.15 crores. Topping the list of tax measures was the levy of Rs.12.5 per cent on telephone rentals collected by the Bharat Sanchar Nigam Limited and private operators, including mobile phone operators. This was expected to fetch Rs. 200 crores per annum.

A largescale revision of the motor vehicle tax with a green tax on old vehicles was estimated to yield Rs. 120 crores. The imposition of a compounding rate of tax per cable TV operator was to bring in Rs. 30 crores and rationalisation of the electricity tax, another Rs. 80 crores. Besides, there was an increase in luxury tax on jewellery from one to three per cent.

The Value Added Sales Tax Bill had been sent for presidential assent and would be taken up for consideration by the Assembly after the sanction was obtained.

While announcing one additional instalment of three per cent of dearness allowance for government employees with effect from April 1, Mr. Ponnaiyan said the earlier instalment of four per cent would be paid fully in cash. As for payment of arrears, the Government worked out a schedule, which involved payment in the form of small savings scrips.

On expenditure management, he announced introduction of a Contributory Pension Fund Scheme for all new employees to be appointed after April 1, 2003. Further pension reforms would be undertaken to ``control the unprecedented growth of these liabilities.''

The Union Government, he said, had backed the State's request to the World Bank for sanction of an economic restructuring loan. ``We have assumed the release of Rs. 1,000 crores as the first tranche of this support in this budget.''

The main development themes included reinvigorating agriculture, a thrust to the manufacturing sector, and accelerated infrastructure development, apart from a social safety net.

The Government had initiated the process of restructuring the outstanding debts to control the debt service cost. The subsidy burden would be reduced through a proper targeting of benefits, and recovery of user charges from ineligible beneficiaries.

Earlier, as soon as the sitting began, Opposition members walked out protesting the power reforms and withdrawal of pension benefits.

Printer friendly page  
Send this article to Friends by E-Mail

Southern States

News: Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts: Classifieds | Employment | Obituary |

Stories in this Section

• Ponnaiyan emphasis on reform priorities
• Govt. pulling out of manufacturing sector
• Green levy imposed on old vehicles
• Tax on rentals of landlines, cellphones
• `Black' humour, brief bonhomie and noisy protest
• Marginal rise in petrol, diesel prices
• 3 p.c. additional DA for Govt. employees
• Plan panel approves Fort conservation project
• Elangovan, Balakrishnan lock horns again
• RI confirmed for graft
• Govt. to collect compounded tax from cable TV operators
• Charge sheet filed in Kullanchavadi attack case, at last
• DMK-Higways row over dais for Karunanidhi function
• Custodial interrogation for inspector in abduction case
• Thrust on care of TB-infected HIV patients

Copyright © 2003, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu