Debt relief for poor in Tamil Nadu budget

March 20th, 2008 - 4:56 pm ICT by admin  

Chennai, March 20 (IANS) The Tamil Nadu government Thursday announced debt relief for the poor besides major tax exemptions and reductions in its nearly Rs.98 billion deficit budget for 2008-09. Finance Minister K. Anbazhagan said the total revenue for the state for the fiscal is estimated at Rs.51,505.62 crore (Rs.515.06 billion) and the total expenditure amounts to Rs.61,297.92 crore (Rs.612.98 billion)

“The deficit is Rs.9792.30 crore (Rs.97.92 billion) which is less than the three percent of the State Gross Domestic Product as per the Fiscal Responsibility Act 2003,” Anbazhagan said.

This was the third budget after the DMK came to power in 2006.

The government last year waived Rs.7000 crore (Rs.70 billion) farm loans given by cooperative banks.

This year it proposed to waive farm loans taken from Tamil Nadu Adi Dravidar Housing and Development Corporation (TAHDCO) to the tune of Rs.5.5 crore (Rs.55 million).

The finance minister also announced waiver of Rs.15 crore (Rs.150 million) in debts taken by weavers from HUDCO.

Housing loans up to Rs.25,000 from Urban and Taluka Cooperative Housing Societies taken by people from economically weaker sections were also waived.

Anbazhagan also announced waiver of entertainment tax outstanding of Rs.16 crore (Rs.160 million) as on March 31 this year from the cable operators.

He also exempted from the Value Added Tax (VAT) products like gold thali and similar symbolic wedding jewellery, bread, bun, rusk, cloth-lined paper envelope, desiccated coconut, packaged tender coconut water, chilli, turmeric, coriander powder, soya oil, jatropha oil, jatropha seeds and jaggery.

The VAT rate has been reduced on ores, minerals, mosaic chips, files and folders made of paperboards and plastic photo frames.

The other tax cut proposals are on resale of used vehicles, leasing of construction equipments and power generators.

Anbazhagan also announced the state government’s readiness to accept the recommendations of the Sixth Pay Commission for its employees.

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