Tamil Nadu Budget 2019: No new taxes with hope for lowering deficit in the coming financial year

Chennai, Feb 8: On Friday, the Tamil Nadu government presented a deficit budget. Deputy CM and Finance Minister O Pannerselvam presented the budget in the assembly. The government announced a number of initiatives in various sectors with implementing an Rs. 2,000 crore comprehensive parking management project in Chennai city.

With a deficit budget, Pannerselvam is confident of lowering the fiscal and revenue deficit in the coming financial year. On this issue, Pannerselvam said, “There is a favorable climate for state’s economic growth and it is expected to increase the state’s own tax revenues. The GST underwent difficulties in 2017 when it was implemented but later achieved a momentum”. This is AIADMK government’s third budget.

The highlights of the Tamil Nadu’s Budget 2019-

Pension to retired employees- 29000 cr

Government employees salaries- 55,399 cr

Tourism Department- 788 cr

Food Subsidy- 6,000 cr

Handloom sector- 1,170 cr

Free Dhoti and Saree Scheme- 491 cr

Power subsidy for consumers- 8,118 cr

The state government will establish a new government Arts and Science college in Rameswara in 2019-20 which will name after APJ Abdul Kalam

Essential diagnostics will be made available at all government hospitals

School education- 1656 cr

Rural drinking water scheme- 15558 cr

Building 20,000 greenhouse- 420 cr

Rural development- 18, 274 cr

Agriculture sector- 10,550 cr

Housing and urban development- 6,250 cr

Health sector- 12, 563 83 cr

Energy sector- 18,560 cr

Tamil Nadu borrowed around Rs 44,000 crore in 2018-19, the state will borrow Rs 43,000 crore in 2019-20. The total debt is expected to increase to Rs 3.95 lakh crore and interest expenses are likely to be Rs 33,000 crore in the coming financial year.