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NT Bureau
Chennai, Mar 23:
 

TAX MAN READETH: Finance Minister K Anbhazhagan presenting the State budget today. Chief Minister M Karunanidhi is also seen. Photo: K Vijay Anand

        A slew of measures intended to benefit a large section of people ranging from farmers, fishermen and housewives to students was announced in the Tamilnadu Budget here today.

        Presenting the Budget, Finance Minister K Anbazhagan announced that undergraduate students studying in government arts colleges would be exempted from tuition fees, thereby extending free education to them at the college- level. The government also decided to introduce shift system in all the government colleges in the coming academic year, he said and added that as a result, the admission capacity in the colleges would double to 60,000.

        Minister also announced slashing of co-operative crop loans interest rates by two per cent, from seven per cent to five per cent in the coming fiscal year. He informed that in the coming fiscal year, the crop loans to the tune of Rs 1,360 crore would be disbursed through co-operatives. He also informed that the elections to co-operatives bodies in the State would be conducted in May-June, 2007.

        As a special initiative to protect farmers from crop loss due to natural calamities like drought and floods, Anbazhagan said financial assistance would be provided to 10 lakh farmers for taking crop insurance for which Rs 15 crore had been allocated. He also said to make agriculture profitable the government would introduce 'Precision Farming' in all districts in 2007-08 at an estimated cost of Rs three crore. Tamilnadu Agricultural University would introduce these modern techniques to farmers through demonstration farms, he said and added that by Precision Farming, the productivity of sugarcane, cotton, vegetables and fruits would be up to two times.

        With a view to improving the river basins in the State, Anbazhagan announced Rs 2547 crore Irrigated Agriculture Modernisation and Water Bodies Restoration and Management project, which had already received approval for assistance from the World Bank. The project would be implemented in 63 sub-basins of the State in the next six years, he said and added that in the coming year, Rs 260 crore had been allocated for the project.

        In order to control price rise of essential commodities, Minister said the government, as an immediate and temporary measure, has decided to procure the commodities used by public on a daily basis like pulses and cooking oil and distribute them through the fair price shops.

        He also announced setting up of a Special Economic Zone in the backward Virudhunagar district. In a bid to strengthen infrastructure, he announced establishment of two shipyards in the private sector at a cost of Rs 3,700 crore in Ennore and Cuddalore.

        To give a boost to the flourishing IT industry in the State, Anbazhagan announced that IT Parks would be set up in Coimbatore, Madurai, Tiruchy, Salem and Tirunelveli. With the objective of providing safe accommodation to women working in IT companies in Chennai, a large working women's hostel complex would be set up with Centre's help,he said.

        Anbazhagan announced a six per cent hike in the Dearness Allowance for government employees from 1 January, restoration of Leave Travel Concessions and a hike in the festival advance from Rs 1,000 to Rs 2,000.

        He said a State- level high-level committee, headed by the Chief Minister and comprising representatives of political parties in the State Assembly, would be set up to monitor the implementation of all welfare schemes.

        Finance Minister also announced the decision to increase the amount of devolution to the local bodies from 8 per cent to 9 per cent from the State's own tax revenue in the next fiscal year.

        As a result of this, he said the local bodies would receive an additional Rs 622 crore. The percentage of devolution would be progressively increased to 10 per cent within the award period of the Third State Finance Commission, he noted.

        The Tamilnadu Budget for 2007-08 presented in the State Assembly showed an overall deficit of Rs 3.75 crore. The fiscal deficit was to the tune of Rs 7800.56 crores, which constituted 2.84 per cent of the Gross State Domestic Product. The budget also left an an uncovered revenue deficit of Rs 101.38 crores. The total revenue receipts was estimated at Rs 44,532.28 crore and total revenue expenditure at Rs 44,633.66 crore.