Measures aim at fortifying State's finances
The All India Anna Dravida Munnetra Kazhagam government, in the Assembly on Monday, presented a growth-oriented Budget that retained the State's traditional focus on social security.
Download graphic: Growth-centric Budget
Click here to download PDF version of TN Budget At A Glance
Watched by Chief Minister Jayalalithaa and her colleagues, Finance Minister O. Panneerselvam, in his three-hour speech, said the Budget estimates had been designed to further improve the State government's financial position. The State would have a sizable revenue surplus of Rs. 2,376.07 crore in the coming financial year. He said the economic growth of the State was projected around 9.39 per cent this year.
“As growth in the primary sector and in the secondary sector in 2011-2012 in the State is projected only at 2.63 per cent and 7.12 per cent respectively, higher investments and flow of funds into these sectors are the need of the hour.” Among the announcements in areas that would trigger growth were Rs. 1,000 crore for the Tamil Nadu Infrastructure Development Fund; training for 1,000 youths every year as part of the New Entrepreneur-cum-Enterprise Development Scheme; major investment proposals of leading companies such as Eicher, Philips Carbon, Sundaram Clayton and Saint Gobain about to be cleared, and plans for accommodating incubation and training centres exclusively for small and medium information technology companies in IT parks of Tiruchi, Madurai and Tirunelveli.
He made it clear that the government was resolved to carry forward its social security agenda. The allocation of Rs. 3,820 crore for social security pension schemes; Rs. 2,000 crore for free distribution of wet grinders, mixies and electric fans; Rs. 1,500 crore for laptops to students; Rs. 750 crore for various marriage assistance schemes and Rs. 720 crore for Dr. Muthulakshmi Reddy maternity assistance schemes were some of the measures.
As for welfare measures for government employees, he said the present health insurance scheme would lapse in June and it was proposed to revamp it to provide a cover of Rs. four lakh instead of the existing Rs. two lakh. The present limit of housing loan extended to employees would be hiked from Rs. 15 lakh to Rs. 25 lakh. Financial assistance, being given under the Tamil Nadu Government Pensioners Family Security Fund Scheme, would be enhanced from Rs. 25,000 to Rs. 35,000 in the event of death of the pensioner.
A media centre and a multimedia transmission centre would be established shortly at the Secretariat to enable reporters to file reports for their organisations instantly without any cost.
He also announced the provision of Rs. 200 crore for the Urban Livelihood Mission, focussing on livelihood security of the urban poor and Rs. 100 crore for the State Balanced Growth Fund. “This government has allotted a total sum of Rs.30,331 crore for the social security net and various welfare schemes,” he said. When Deputy Leader of Opposition Panruti S. Ramachandran (DMDK) and DMK floor leader M.K. Stalin rose to say something they were not allowed by the Speaker Later, Mr. Stalin led a walkout of his party members.
Keywords: Tamil Nadu budget, AIADMK government, Jayalalithaa, O. Panneerselvam
The Govt. must reduce the recurring freebies/subsidies in a phased manner from the present Rs.22,262 crore (about Rs. 30,000 crore)to NIL which forms major junk in State's Revenue which affects very development of our State. By taxing the people, free distribution of Rice to the tune of Rs.4,900/- crore etc. is to be reconsidered. The Govt. must raise its resources from non-governmental organisations to incur such expenditure on non-productive freebies and not by taxing the people. The worst sufferers are middle class & lower middle class. This will not in any way help our State to grow in the long run and to achieve Tamil Nadu Vision 2023
While a sense of positivity is seen on Mr.Mohan's view it is not so on Mr.Rangarajan. I am not a smoker or a drunkard either. Discipline can only be enforced from external sources to an extent. If you put a ban on smoking/liquor, then again, there is smuggling, instead, leave it to the public to decide. In my opinion, if people still cannot absolve themselves of the habit, let them atleast contribute igher to the exchequer by paying a price. If it indirectly acts as a deterrent then its more than welcome, as health of the people is paramount than tax revenue, else, any amount of increase is justified. The increase they are parting is far far less than the harm done to themselves and to the society by smoking and indulging in filty actiities after drinking is far more
The Govt. must reduce the recurring freebies/subsidies in a phased manner from the present Rs.22,262 crore to NIL which forms one fifth of State Revenue which affects very development of our State. By taxing the people, free distribution of Rice to the tune of Rs.4,900/- crore etc. is unwarranted. The Govt. must raise its resources from non-governmental organisations to incur such expenditure on non-productive freebies and not by taxing the people. The worst sufferers are middle class & lower middle class. This will not in any way help our State to grow in the long run.
Why to increase the tax when there is fund surplus!. What is the
solution of power cuts, infrastructure facility, medical facility,
transportation facility. Government has never discuss with public
before announcing freebies. Freebies are announced for their own party
benefits. Please stop freebies and stop more tax on people.
Increasing the liquor tax will encourage the consumption of illicit liquor.This will cause health problem mainly to the poor people
Instead of attracting investment it would be better to utilise the
existing investments of private sector, Avenues must be created for
utilisation of saving with the native of the state by going to privatice
public transport system.
The tax on fuel is 30% which is a must for economy,Where as tax on
liquor is 14.5%
increasing the tax of liquor just only for the revenue is really a shameful act. if it is done to deter the alcoholic community then it will be good.
i really feel pity that the govt. is making revenue from some immoral way and paying the salary for the moral & honest staffs.
some people (irrespective of the religion) doesnt like to eat or use from the money which has came from some immoral activity. i too belongs to this group.
This is the best time for people to quit drinking or they continue drinking to oil the state machinery. The goal of bringing in revenue by the state seems to be evil by making people drink more, why wouldn't impose the same tax hike on cigarettes as well or ban cigarette sale in the state, no ! we need money! we don't care who drinks or smokes, we need money to run the govt! Should the people elect govt which would function in their best interest or which would look at selling liquor and cigarette to raise revenue for other expenditures.
Increase in tax for liquor certainly will increase State's revenue, there by money obtained can be utilized for other primary sectors like Electricity, PWD and SETC....
Increasing tax in liquor products leads to smuggling of goods from neighbouring states and also increase country brewing..
Money for developmental projects, 'yes'; for freebies an emphatic 'no'. Practical Solutions for power shortage and unemployment should have been addressed. Over aa, it is yet another budget. That's all.
TN is a developing state with a lot of potential for growth. While the total borrowing is only 19.6% of GSDP and when the fiscal deficit is less than 3%, there are two dissapointing figures. The spending on infrastructure development is very less for an infrastructure hungry state and not fully utilising the center's funds is a crime. The state could have used that money as well for infrastructure spending.
Tax evasion by SME is a concern that is not addressed. Overall, for people who are looking for a development oriented budget, this is a dissapointing one!
Like 14.5% tax on liquor, there must be fines for spitting, urinating
and throwing wastes in public places throughout the state. Income
generated out of these can be ploughed back for improving public
amenities.
The presented Budget for the year 2012 by the Finance Minister of Tamilnadu shows that the State government is serious about the financial situation of Tamilnadu and at the same time adheres to the Central government's stipulation for financial discipline. This shows the Chief Minister Madam jayalalitha's sincere resolve to take the State finances out of deep mud created previously.
Smoking and drinking hard liquor are made legal. Millions of people are employed in the manufacture,trading etc. that too legally. Consumption of tobacco/smoking/drinking are considered as injurious to health and the consumers are made to feel guilty though what they do is not illegal. But on the premises of the guilt-feeling by the consumers the governments have no hesitation in raising the tax on these products. If there is any increase of tax in any other legal item there will be huge hue & cry over it. I am neither a smoker nor a drunkard but i object to taking advantage of people's situation.
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