Presenting the Budget for 2023-24, Tamil Nadu Finance Minister P T R Palanivel Thiaga Rajan on Monday said the DMK government has brought down the state’s revenue deficit from 3.28 per cent in 2020-21 to 1.23 per cent of the GSDP in 2022-2023, close to the ratio of 2015-2016 through “reforms of unprecedented scale and scope” in the last two years.
The state’s revenue deficit, which has been on the rise during the AIADMK government, has also been brought down to Rs 30,476.01 crore in the revised estimates compared to Rs 52,781 crore in the budget estimates for the 2022-2023 fiscal. The fiscal deficit reduction after the DMK assumed office in May 2021 stood at Rs 31,850, with Thiaga Rajan terming it as an “unprecedented feat” as the DMK dispensation inherited an annual deficit of Rs 62,000 crore.
However, the total outstanding debt will increase to 7.26 lakh crore as on March 2024 as against the Rs 6.53 lakh crore as on March 2023 as the net public debt for the incoming financial year is projected at Rs 91,866.14 crore. The Debt-GSDP ratio will stand at 25.63 percent down from the current fiscal’s 26.29 per cent, which is “within the limits” set by the 15th Finance Commission, the minister said.
In the coming year, the Finance Minister said, the revenue deficit of the government has been contained at 1.32 per cent of the GDSP, much below the levels of 2017-18.
The DMK, while in opposition, had blamed the previous AIADMK government of “mismanaging” the state’s finances and promised to set things right once it came to power. In his two-hour long speech, Thiaga Rajan said the main reason for the fiscal stress faced by the Government at the time of assuming office was the fall in tax revenue in the previous years.
“The state’s own tax revenues which were at a healthy 8 percent of the Gross State Domestic Product (GSDP) during 2006-11 have witnessed a precipitous fall in the last 10 years and reached 5.58 per cent in 2020-21,” he said, adding that this is much lower when compared to other large States such as Maharashtra and Karnataka.
Though the Tax-GSDP ratio has increased to 6.11 per cent in the current year due to the efforts of the DMK Government in the last two years, concerted action is needed to raise it further to find financial resources for welfare schemes, he added.
The second full-fledged budget of the DMK government laid much focus on infrastructure, development of women, girl students, education, and children, and environment, besides other sectors. Thiaga Rajan announced that the scheme to provide Rs 1,000 as monthly assistance to women heads of “eligible” households will be rolled out on September 15.
The ”rightful money” is a major poll promise of the DMK. However, the document didn’t speak about other promises like reduction in the price of diesel and subsidy for LPG cylinders. The Finance Minister also announced expanding the Free Breakfast scheme to all 30,000 primary schools run by the government, benefitting 18 lakh students of class one to five.
Giving a major push to infrastructure, the Budget announced that a metro rail system will be built in Madurai, and Coimbatore at a cost of Rs 8,500 crore and Rs 9,000 crore, while Rs 1,000 crore was allotted to redevelop north Chennai, which has been crying for attention for the past few years.
The Adyar river in Chennai will be restored for a length of 44 km under a project that will include river cleaning activities such as prevention of sewage from entering the river and construction of Sewage Treatment Plants (STPs) at an estimated cost of Rs.1,500 crore through PPP mode. To ease congestion on the arterial Anna Salai in the state capital, the government has decided to construct a four-lane elevated flyover from Teynampet to Saidapet at Rs 621 crore.
Besides metro connectivity, Coimbatore and Madurai will also receive huge funding under two schemes for their “integrated, holistic, and planned” development for which the government has decided to come out with a comprehensive development plan.
The Budget also allotted Rs 2,000 crores for upgrading 5,145 km of important link roads and bus plying roads in rural areas, while it will take up renovation of 10,000 water bodies in rural areas consisting of minor irrigation tanks, and ponds at a cost of Rs 800 crore.
The School Education Department got the maximum funding of Rs 40,000 crores with Thiaga Rajan announcing several programmes to augment infrastructure in schools and a dedicated portal to ensure that scholarship amount reaches eligible students in a timely manner.
The budget also announced that all schools functioning under various departments will be brought under the School Education department, while declaring its intention to establish a world class skill centre named “Tamil Nadu World Innovation and Skill Training Hub” (TN-WISH) at a cost of Rs 120 crore.
To reverse the trend of decrease in the number of persons from the state getting into civil services, the government announced a scheme to provide Rs 7,500 per month for 10 months for 1,000 civil services aspirants who will be shortlisted through a screening test. Those students who clear the preliminary examination will be provided a lump sum amount of Rs 25,000, the budget added.
The government also decided to take the Sangamam cultural extravaganza which was relaunched this year to eight major cities in 2024 and establish 25 part-time folk art training centres across the state to preserve folk art and to ensure that these traditions continue to flourish in the future.
It has also decided to set up a Grand Chola Museum in Thanjavur to highlight the contribution of the Cholas. In other announcements, the government decided to double the ex-gratia to the next of kin of armed forces personnel hailing from Tamil Nadu who are killed in war/war-like operations from Rs 20 lakh to Rs 40 lakh.
It also announced schemes to promote economic development of SC/ST entrepreneurs, to ensure basic amenities in Adi Dravidar habitations in both urban and rural areas at a cost of Rs.1,000 crore over a period of5 years.
On the environment side, the Government announced a Coastal Restoration Mission with the objective of preventing sea erosion, reducing marine pollution and conserving marine biodiversity at an estimated cost of Rs 2,000 crore in the next 5 years. The government will notify a new wildlife sanctuary after social reformer E V R Periyar in Anthiyur and Gobichettipalayam Taluks in Erode district.
Giving a major push to industrial growth, the Finance Minister said the state will create a Special Purpose Vehicle, collaborating with Indian Railways, through TIDCO to identify and undertake new railways projects.
He also proposed establishment of two industrial parks in Ranipet and Kallakurichi districts with employment potential for 32,000 women and industrial parks in Virudhunagar, Vellore, Kallakurichi, and Coimbatore at an estimated cost of Rs 410 crore for providing employment opportunities to nearly 22,000 persons.
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