Presenting his first budget as the state’s finance minister, Rajan also announced the reinstatement of the MLA Constituency Development Scheme with Rs 3 crore per constituency from the current year. (In photo: Tamil Nadu FM PT Rajan and state Chief Minister MK Stalin)
Contrary to the ‘Once in a generation reforms a must’ statement given in the white paper on state finances, Tamil Nadu Finance Minister Palanivel Thiaga Rajan on Friday presented a relatively populist budget slashing taxes on petrol, to self-help groups. Cooperative Loan Waiver, and Tax Waiver Scheme among others.
Rajan also announced the government’s decision to implement the urban wage employment scheme with an outlay of Rs 100 crore.
DMK came to power under the leadership of its President and Chief Minister MK Stalin by making about 500 election promises and opposition parties are raising their voice to implement the promises.
Presenting his maiden budget as the state’s finance minister, Rajan also announced the reinstatement of the MLA Constituency Development Scheme at Rs 3 crore per constituency from the current year.
On the reduction in fuel prices, Rajan said that the government has decided to cut the effective rate of tax on petrol by Rs 3 per liter and this will give a big relief to the working class people in the state.
He said the measure would result in a revenue loss of Rs 1,160 crore annually.
According to him, the government will waive off loans worth Rs 2,756 crore given from self-help groups to cooperative credit societies and an amount of Rs 600 crore has been provided in the budget for this purpose.
He introduced an urban wage employment scheme on a pilot basis to provide gainful employment to the urban poor, by engaging in the construction and maintenance of public assets such as parks, playgrounds, storm water drains, roads, buildings and rejuvenation. Implementation announced. of water bodies.
An amount of Rs 100 crore has been allocated in the budget for this scheme.
To collect tax dues of Rs 28,000 crore under the Tamil Nadu Value Added Tax and other inheritance laws, Rajan said the government would clear the tax arrears with an effective resolution plan.
The finance minister also announced the government’s decision for a major initiative for smart metering for all public utilities.
Rajan said that the total revenue receipt for the financial year 2012 is estimated at Rs 2,02,495.89 crore and revenue expenditure at Rs 2,61,188.57 crore resulting in a revenue deficit of Rs 58,692.68 crore. Is.
He said that this increase in the revenue deficit has been due to extraordinary times and is not diminished in the least by this government’s commitment to fiscal correctness and consolidation in the years to come, so strongly indicated in the white paper.
The total capital outlay has been fixed at Rs 42,180.97 crore. On this basis, the fiscal deficit for the financial year 2021-22 is estimated at Rs 92,529.43 crore.
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