Main Features of budget of Tamil Nadu

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Main Features of budget of Tamil Nadu

Tamilnadu  is second largest economy after Maharashtra with Dollar 220 billion  gross state domestic product. Per capita GDP of Tamil Nadu was $2,200(- Rs.1,43,547 at current prices (2015 – 16) ) in the year 2014–15, the third highest in India. Tamil Nadu is an innovation – based economy with a strong performance in manufacturing and services.Services  contribute to 45% of the economic activity in the state, followed by manufacturing at 34% and agriculture at 21%. Government is the major investor in the state with 52% of total investments, followed by private Indian investors at 29.9% and foreign private investors at 14.9%. It has been ranked as the most economically free state in India by the Economic Freedom Rankings for the States of India 2014-15. Gross state domestic product (GSDP) of Tamil Nadu grew at a compound annual growth rate (CAGR) of 12.31 per cent between 2004-05 and 2015-16, reaching US$ 175.33 billion in 2014-15. Even after the  effects of drought and demonetisation during the previous financial year of 2016-17, Tamilnadu clocked a growth rate of 7.94%.

TAMILNADU BUDGET 2017-18:-

The finance minister of Tamilnadu, D Jayakumar presented the state budget 2017-18 in the state assembly. This is his first state budget, which includes many new welfare schemes for farmers, state employees, various schemes for fishermen and other sections of the society.Total Expenditure for 2016-17 has gone up from Rs 167493.27 to Rs 183745.03 crore.The fiscal deficit for 2016-17 is Rs 61341.23crore against Rs 40533.84 crore earlier. The Tamilnadu Budget pegs growth at 9 per cent from existing 7.49 per cent. Tamil Nadu’s fiscal deficit is 4.58% of GSDP for 2016-17, breaching norms prescribed in the TNFRA. One of the main reasons for that is,Tax revenue has gone down by Rs 3,000 crore this year. Budget estimated that  commercial taxes revenue for TN in next fiscal would be Rs 77,234 crore.  Tamil Nadu fiscal deficit expected to come down for 2017-18 to less than 3% of GSDP.

  • The major source of income for the State in Value Added Tax. Since the GST will replace VAT, there will be a loss in the revenue, which will be compensated by the Centre.
  • No tax benefits included in budget due to the impending GST implementation.
    Further, With the implementation of GST, TN stands to benefit, says finance minister Jayakumar as revenue from taxation expected to be around Rs 99,590 crore for next year.

Three important economic numbers in budget 2017-18:-

1. Rs. 1,59,363crore – total revenue

2. Rs. 175293 crore – total expenditure

3.Rs. 15,930 crore – fiscal deficit

 

EDUCATION:-

Tamilnadu is one of highest literate stste in India. The Gross Enrolment Ratio in higher education at 42 percent is the highest in the country. The State’s net enrolment rate is at 99.85% and 99.11% at the primary and upper primary levels. To sustain growth the state has initiated many innovative flagship programmes Like-  Distribution of laptops ;the special cash incentive of Rs.5000 per child to reduce dropouts at secondary level.  BUDGET 2017-18  makes some more provision for education like-

* Modern residential school with hostel facilities for teachers will be set up in Javvadu hills for the benefit of tribal communities at a cost of Rs 24 crore.
* Rs 758 crore allotted for the free laptop scheme.
* The Budget allocates Rs.150 crore to give vocational training to youth.
* Rs 1,503 crore allotted for free schemes extended to school going children.
* Number of PG medical seats raised from 1,188 to 1,362
* Rs 26,932 crore allotted for school education department. Higher education department gets Rs 3,680 crore.
* Rs 352 crore allotted for improving schools infrastructure.
Public health, Sanitation and family welfare:-

This sector has given more priority than previous year budget as Public health and family welfare gets 10,158 croreallotment in budget 2017-18. Some more provisions are-
* Old tenements constructed by the Tamil Nadu Slum Clearance Board will be reconstructed.
* 30 new Primary Health Centres to come up at a cost of Rs 43.76 crore.
* Green housing project gets Rs 420 crore to build 20,000 houses.
* Urban Swachh Bharat Mission gets Rs 600 crore allocation..
* Medical Park to come up in Kanchipuram at a cost of Rs 130 crore.
INFRASTRUCTURE:-

Tamilnadu has well developed network of road, railways and ports. Infrastructure has helped Tamilnadu to be 2nd largest state economy of India.TO keep the pace of state growth, budget 2017-18 provisined-

* Rs 160 crore allotted to widen state Highways and separate Rs 3,156 crore for  Road infrastructure maintenance.
* Rs 100 crore for Highways safety fund.
* Rs 300 crore allotted for Tamirabarani-Nambiyaaru river linking project.
* Rs 3,042 crore loan from World Bank will be used for conservation of various water bodies.
* Rs 300 crore allotted for the KudiMaramathu project.
* Environmental projects, like conservation of Pallikaranai marshland, to be undertaken from the Green Climate Fund.

Fishing:-

Fishing is major source of employment in Tamilnadu.morethat 2 lakh people are dependent on fishing directly or indirectly. Hence FM annonced increased quota of diesel and kerosene for fishing and the relief for fisherfolk during non-fishing season has been increased to Rs. 4500 per month for Rs. 2700. New fishing harbur is provisioned for Mookaiyur in Ramanathapuram district.

* Fishing ban compensation raised to Rs 5,000.
Animal husbandry and Dairy sector:-
Animal husbandry department gets Rs 1,161 croreallocation in budget 2017-18 and for Madurai new Aavin milk production unit at cost of Rs 40 crore is provisioned.The Madurai milk production unit will be exclusively for the production of flavoured milk under brand Aavin.
AGRICULTURE:-

Agriculture is the primary occupation of about seventy percent of the rural population of Tamil Nadu.Tamil Nadu accounts for 10% of fruits and 6% of  vegetables production of India. Annual  food grain production of  fruit in 2007-8 was 100.3 million metric ton(mmt).Tamil Nadu is the largest producer of turmeric, banana, flowers and  tapioca. Second largest producer of mango, natural rubber, coconut and  groundnut. Third largest producer of coffee,  tea and sugar cane. Tamil Nadu is also leader in livestock poultry and fish production. Tamilnadu accounts for 17.7% of total poultry production in India. Budget provision for thisa sector for 2017-18 are-
* Sugarcane cultivation will be encouraged under the drip irrigation scheme.
* Rs 7,000 crore will be disbursed as crop loan through cooperative banks.
Social welfare:-
* 3.5 lakh plots of land will be given to economically weaker sections. Labour welfare department gets Rs 1,010 crore for housing project scheme.
* Rs 22,394 crore allotted to government employees/pensioners welfare fund.
* BC/MBC welfare gets Rs 983 crore. AdiDravida welfare ministry gets Rs 3,009 crore.
* Urban poverty alleviation schemes get Rs 272 crore.
* Rs 1,000 crore allotted for 100 days employment scheme in rural areas for MGNREGA.

*Smart canes to be given to 10,000 blind people.
* Disability pension raised from Rs 1,000 to Rs 2,000.

 

FM further announced that  State Planning Commission will be replaced with State Development Policy Council. The Council will advise the government on policy coherence and formulation of porgrammes to guide development of State.

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