The Tamil Nadu Government will focus on rural and urban infrastructure, expedite implementation of projects which will benefit the agriculture and manufacturing sectors, said Finance Minister O. Panneerselvam in the Assembly today.
Presenting the budget for 2013-14, he said the thrust would be on agriculture with investments going into storage and marketing infrastructure, industrial development backed by speedy implementation of infrastructure projects including in power and roads.
No new taxes
The Government has decided not to impose new taxes or hike existing rates in the backdrop of the slow economic growth, he said.
Supported by a 17 per cent growth in State’s tax revenues estimated at over Rs 86,065 crore, the Government has presented a revenue surplus budget of Rs 664 crore, contained fiscal deficit and debt which has given it room to invest more in capital expenditure for growth and on social sectors.
All the welfare schemes will continue, he said.
Fiscal deficit is at Rs 22,938 crore which is 2.84 per cent of the Gross State Domestic Produce and well within the three per cent limit under the Tamil Nadu Fiscal Responsibility Act, 2003. Net borrowings in 2013-14 will be higher compared with the current year at Rs 21,142 crore (Rs 15,675 crore) but well within the limits allowed Rs 24,263 crore (Rs 20,716 crore).
This financial comfort has given Tamil Nadu headroom to focus on capital expenditure and sustain its development schemes.
Infrastructure
The Government has allocated Rs 2,000 crore for an infrastructure development fund and Rs 200 crore for project preparation fund for the year. Key infrastructure projects have been cleared at the first meeting of the Tamil Nadu Infrastructure Development Board.
A new body, the Tamil Nadu State Highways Authority will be created along the lines of the National Highways Authority of India to maintain and manage State Highways.
The biggest externally aided project will be implemented in the road sector at a cost of Rs 8,580 crore covering over 1,678 km.
Agriculture
The allocation to agriculture is Rs 5,189 crore (Rs 4,829 crore) of the total Rs 17,220 crore to the primary sector. Following the Rs 1,517-crore relief package to the Cauvery Delta farmers, the Government is readying a relief package for the other districts.
Horticulture will be expanded with 8.2 lakh acres brought under vegetable cultivation against the present 7.25 lakh acres.
Infrastructure in agricultural markets will be upgraded and markets integrated with commodity exchanges. The objective is to increase processing, farmers’ revenue and stabilise incomes.
Crop loan target from the cooperative sector is pegged at Rs 4,500 crore for 2013-14 against Rs 4,000 crore in the current year.
To improve water use efficiency, the State Government has decided to do away with the one-acre limit on small and marginal farmers to make use of subsidy for micro irrigation. Farmers can choose their suppliers and the subsidy will be released to the farmers’ account. Over Rs 520 crore will be available as subsidy to cover over 1.30 lakh acres.
Food Subsidy
Panneerselvam said food subsidy is set at Rs 4,900 crore with the Government deciding to continue with universal coverage under the Public Distribution System. Whatever the implication of the Centre’s Food Security Bill, the State Government will continue with free rice supply and subsidised sales of essential commodities like pulses and edible oil.
The market intervention system to control food prices will be strengthened with the price stabilisation fund doubled to Rs 100 crore to buy and distribute essential commodities at cost price. Over one lakh tonnes of rice will be sold in the open market at about Rs 20 a kg through cooperative stores and special outlets. Outlets will also be opened in cities for farmers to sell fresh farm produce directly.
Education
The Government has earmarked maximum funds to school education at Rs 16,965 crore.
Tamil Nadu was among the earliest to notify the Right of Children to Free and Compulsory Education Rules, 2011. Over 24.76 lakh students will receive cash benefit of Rs 381 crore including cash incentives.
Enrolment in higher education has gone up to 6.51 lakh students in 2012-13 (6.09 lakh).