The Union budget presented by Finance Minister Nirmala Sitharaman on Friday had no specific announcements for Tamil Nadu. However, the thrust given to building infrastructure, water security, roads and Metro networks may benefit the State.
At a pre-budget meeting, Tamil Nadu Deputy Chief Minister and Finance Minister O. Panneerselvam had made a number of demands. He had sought additional allocation of ₹6,000 crore under the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) for constructing two lakh additional climate-resilient houses to replace huts damaged by Cyclone Gaja and a special budgetary allocation of ₹7,077 crore for creating multi-hazard-resistant power transmission infrastructure in areas prone to natural calamities in the State.
The Tamil Nadu government had also sought expedited clearance of Phase-II of Chennai Metro and expected that an announcement to that effect would be made in the Budget speech. The State also expected allocation for augmentation of the Chennai Suburban Rail Transport System.
Mr. Panneerselvam had requested the Centre to grant a special package of ₹1,000 crore to Tamil Nadu in the Union Budget, to tackle the severe drought in various parts of the State and facilitate settlement of pending dues under various schemes and GST.
The first budget presented by the Prime Minister Narendra Modi-led government after coming back to power did not have any specific announcements pertaining to any of the above demands. The exact details of what Tamil Nadu gets under various schemes will be clear over time.
According to the Budget estimates for 2019-20, the transfer to States and Union Territories in terms of grants, loans and others is pegged at ₹5,20,295.19 crore. Tamil Nadu would get ₹32,551.42 as net proceeds from Union taxes and duties, according to budget estimates for 2019-20. Its share of Central GST is pegged at ₹8,864.26 crore. The State would get ₹30,638.87 crore as net proceeds from Union taxes and duties, according to revised estimates for 2018-19.
The budget announced that the government is examining the Ujjwal Discom Assurance Yojana scheme and will improve it further. Any significant improvement will help the Tamil Nadu Generation and Distribution Corporation (Tangedco), which has been facing huge losses.
The government announced its intention to hold under 51% stake in public sector undertakings post-divestment. Tamil Nadu is home to major central PSUs such as NLC India and Chennai Petroleum. Divestment has been a politically sensitive topic in the State.
