Allocation for local bodies accounts for 33 per cent of the State's Own Tax Revenue (SOTR), Chief Minister M. Karunanidhi said on Monday.
Quoting the State budget for 2010-2011, the Chief Minister said the quantum of devolution of funds to local bodies would go up from 9.5 per cent of SOTR to 10 per cent. A sum of Rs. 7,701 crore would be given to the bodies in the form of devolution, assigned revenue and assistance for schemes.
Besides, the government incurred expenditure for the basic services to be provided by the local bodies in the areas of primary education, water and public health; absorbed the expenditure for other functions of the bodies and provided the total amount as direct financial assistance to the bodies. All these would represent one-third of the SOTR.
As for the schemes aimed at benefitting farmers, the Chief Minister said the budget had set apart an additional amount of Rs. 100 per tonne for the current crushing season of sugarcane (2009-2010); determined the procurement price of Rs. 2,000 per tonne for cane in the coming year; provided for crop insurance premium subsidy of Rs. 40 crore and the State's share of Rs. 200 crore toward compensation of crop loss; allocated Rs. 200 crore for giving incentive for paddy procurement and provided Rs. 295 crore as subsidy to the Tamil Nadu Electricity Board for the continuation of the free power supply scheme to farmers.
Among other announcements were the formation of 10,000 more self-help groups for farmers and the allocation of Rs. 152 crore for carrying out welfare assistance schemes of the Tamil Nadu Farmers and Agricultural Labourers Welfare Board.
Mr. Karunanidhi was responding to the criticism of the Communist Party of India (Marxist) on the issues of less devolution to local bodies and neglect of welfare schemes for farmers and agricultural workers.
