The Hindu Business Line : No fresh tax proposals in TN budget; interest on farm loans reduced

CHENNAI: Laced with a slew of tax concessions and proposals to increase the pace of industrialisation in the State, the Tamil Nadu Finance Minister, Mr K Anbazhagan on Thursday presented a populist budget, which did not contain any fresh taxation proposa ls.

He also left uncovered a revenue deficit of Rs 2.19 crore, on the plea that it would be covered by better tax collections.

In a bid to woo women, Mr Anbazhagan waived the sales tax on magalsutras used by Hindus, Muslims and Christians. He also announced setting up of farmers Self-Help Groups, in which members of primary agricultural co-operatives would be the members. He al so reduced the interest rate on farm loan from five to four per cent.

He said the government proposed to disburse new crop loans to the tune of Rs 1,500 crore in 2008-09. An amount of Rs 40 crore has been allocated to provide financial support to 25 lakh farmers to insure their crops against loss due to natural calamities.

The minister announced a slash in the sales tax on several farmers' produce like jatropha, jaggery and coconut products. He also announced waiver of special fee collected from students by government and government-aided schools.

The Finance Minister proposed setting up four Special Economic Zones at Gangaikondan, Cheyyar, Perunthurai and Ranipet, each dedicated to transport engineering goods, automobile and auto spare parts, engineering goods and leather respectively.

He also announced waiver of housing loans up to Rs 25,000, statutory status to the State Women Commission, a hike in the marriage assistance scheme from Rs 15,000 to Rs 20,000 for poor girls, a new district with headquarters at the hosiery town of Tirupp ur, upgrading Vellore municipality to a Corporation and Self Help Groups for farmers.

Mr Anbazhagan also slashed sales tax on a variety of goods and announced a Rs 1,000 hike in pension for the indigent retired journalists. The monthly pension given to indigent retired journalists, who have worked for a minimum of 20 years has been incre ased from Rs 3,000 to Rs 4,000. Also, family pension granted to families of journalists has been increased to Rs 2,000 from Rs 1,500. A Journalists Welfare Fund has been created with a corpus of Rs one crore. - PTI

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