No fresh taxes, populist schemes in revised budget







Focus on water management, housing, skill development, poverty reduction and a clean Tamil Nadu

The revised budget for 2016-17 presented by Finance Minister O. Panneerselvam in the Assembly on Thursday did not impose any fresh taxes.
However, it lacked populist announcements, disappointing those who were expecting the government to unveil plans for implementing some of its electoral promises, such as scooters at subsidised rates for women and waiver of education loans.
The budget, nonetheless, gave a major thrust to agriculture and allocation for the crop loan waiver scheme for farmers. The revenue and fiscal deficit numbers were revised upwards on lower tax collections and increased spending.
With a view to addressing issues facing the State, Mr. Panneerselvam announced that the government had formulated five missions: water resource management and revival of Kudimaramath (maintenance of water systems by people); housing to achieve hut-free villages and slum-free cities; poverty reduction and economic empowerment of the poor; a clean Tamil Nadu; and a mission for skill development.

The State set an ambitious foodgrain production target of 147 lakh tonnes during 2016-17 and will also launch a new scheme for dry land farming for increasing production and productivity of millets, pulses and oilseeds.
Cooperatives will extend fresh crop loans of Rs. 6,000 crore. The government estimated the principal and interest to be waived at Rs. 5, 780.92 crore, which will be compensated with interest in five years to cooperatives. This will benefit 8,35,360 small farmers and 8,58,785 marginal farmers. The government allocated Rs. 1,680.73 crore for the co-operative loan waiver scheme.
Mr. Panneerselvam added the government would give 12,000 milch cows to poor women and 4,00,000 goats/sheep to one lakh poor families this fiscal. As many as 5.35 lakh students would be provided with laptops.
Subsidies and transfers accounted for Rs. 68, 211.05 crore in the revised budget estimate for 2016-17. Out of it, food accounted for Rs. 5,100 crore and electricity, Rs. 9,000 crore.


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