General Knowledge Articles

Tamil Nadu Budget 2024-25 Part - 01

August 6 , 2024 115 days 7222 0

(இதன் தமிழ் வடிவத்திற்கு இங்கே சொடுக்கவும்)

Introduction

The Finance Minister of Tamil Nadu, Mr. Thangam Thennarasu, presented the Budget for the state for the financial year 2024-25 on February 19, 2024.
This budget outlines the state's economic projections, expenditure, revenue, and fiscal strategies for the upcoming year.

Economic Projections and Sectoral Contributions

Gross State Domestic Product (GSDP): The GSDP of Tamil Nadu for 2024-25, at current prices, is projected to be ₹31,55,096 crore, indicating a growth of 16% over 2023-24.

Sectoral Growth:

Services Sector: In 2023-24, the services sector is estimated to grow by 9.4%.
Manufacturing Sector: The manufacturing sector is projected to grow by 7.1%.
Agriculture Sector: The agriculture sector is expected to grow by 4.3%.

Sectoral Contributions to the Economy:

Services: 53%
Manufacturing: 34%
Agriculture: 13%
Per Capita GSDP: The per capita GSDP of Tamil Nadu in 2023-24, at current prices, is estimated at ₹3,50,695, an increase of 14% over 2022-23.

Expenditure and Fiscal Strategy

Total Expenditure: Total expenditure for 2024-25 (excluding debt repayment) is targeted at ₹4,12,504 crore, reflecting a 12% increase over the revised estimate of 2023-24.
Capital Outlay: Capital outlay for 2024-25 is proposed to be ₹47,681 crore, an increase of 12% over the revised estimate of 2023-24.
This indicates the expenditure towards the creation of assets.

Revenue Expenditure: Revenue expenditure for 2024-25 is projected at ₹3,48,289 crore, a 10% increase over the revised estimate of 2023-24.
This includes salaries, pensions, interest, grants, and subsidies.
Loans and Advances: Loans and advances by the state are expected to be ₹16,534 crore in 2024-25, 79% higher than the revised estimates.
Committed Expenditure: Tamil Nadu is estimated to spend ₹1,89,897 crore on committed expenditure (salaries, pensions, and interest), which is 64% of its estimated revenue receipts.

Revenue and Receipts

Total Receipts: Receipts (excluding borrowings) for 2024-25 are estimated at ₹3,03,814 crore, an increase of 10% over the revised estimate of 2023-24.
Revenue Receipts: Total revenue receipts for 2024-25 are estimated to be ₹2,99,010 crore.
Of this, ₹2,25,901 crore (76%) will be raised by the state through its own resources, and ₹73,109 crore (24%) will come from the centre.

State’s Own Tax Revenue: Tamil Nadu’s own tax revenue is estimated to be ₹1,95,173 crore in 2024-25, a 15% increase over the revised estimate of 2023-24.

Devolution and Grants from Centre:

State’s share in central taxes is estimated at ₹49,755 crore, a 10% increase over the revised estimate of 2023-24.
Grants from the centre are estimated at ₹23,354 crore, a 13% decrease from the revised estimates for 2023-24.

Deficits and Debt Management

Revenue Deficit: Revenue deficit for 2024-25 is estimated to be 1.6% of GSDP (₹49,279 crore), similar to the revised estimates for 2023-24.
Fiscal Deficit: Fiscal deficit for 2024-25 is targeted at 3.4% of GSDP (₹1,08,690 crore), marginally lower than the revised estimates for 2023-24 (3.5% of GSDP).
Fiscal deficit is projected to be lowered to 2.9% of GSDP by 2026-27.

Outstanding Liabilities: At the end of 2024-25, the outstanding liabilities are estimated to be 26.4% of GSDP, lower than the revised estimate for 2023-24 (26.7% of GSDP).

Highlights for budget estimates 2024-25

Tamil Development

Translation of Tamil Literature: The twin epics of Tamil literature, Silappathikaram and Manimegalai, will be translated into 25 Indian and foreign languages at a cost of Rs.2 crore.
Promotion of Tamil Language: An allocation of Rs.2 crore will be made for translating literary works to spread the euphonious notes of Tamil language across the world.
Technological Advancements: Rs.5 crore will be allocated to enable startups to develop Natural Language Processing and Large Language Models based on machine learning and artificial intelligence.
Digitization Project: A project to digitize rare books and documents will be undertaken at a cost of Rs.2 crore to preserve the richness of the Tamil language and history for future generations.

Documentation of Linguistic Resources of the Tribes

Preservation Efforts: Rs.2 crore will be allocated for documenting and preserving the Saurashtra and Baduga languages and the linguistic resources of various tribes such as Todar, Kothar, Solagar, Kani, and Narikuravar from an ethnographical perspective.

Rural Development

Housing Project: The ‘Kalaignarin Kanavu Illam’ scheme aims to create a 'Hut-Free Tamil Nadu' by 2030, with eight lakh concrete houses to be constructed in rural areas.
In the first phase, one lakh new houses will be built at a cost of Rs.3,500 crore.

Road Development: Under the ‘Mudhalvarin Grama Salaigal Membattu Thittam’, road development covering 2,000 km will be undertaken at a cost of Rs.1,000 crore.

Overhead Tanks Construction: 2,000 new overhead tanks will be constructed in rural local bodies at a cost of Rs.365 crore.
Development in Extended Areas: Various development works, including road upgradation in rapidly growing extended areas adjacent to Municipal Corporations, will be carried out at an estimated cost of Rs.300 crore.
Water Bodies Restoration: A project aimed at restoring 5,000 water bodies through community participation will be implemented at an estimated cost of Rs.500 crore.

Poverty Alleviation

Chief Minister’s Thayumanavar Scheme: A grand initiative to rescue around five lakhs of the poorest families from poverty by providing integrated government assistance over the next two years.

Municipal Administration and Water Supply

Urban Road Upgradation: 4,457 km of urban roads will be upgraded at a cost of Rs.2,500 crore through the convergence of various schemes.
Modern Public Infrastructure: An urban public square with natural landscapes, exhibition halls, and open-air theatres will be established in Island Ground at a cost of Rs.104 crore.
Beaches at Besant Nagar, Ennore, and Kovalam will be embellished with modern facilities at a cost of Rs.100 crore.
Hi-tech Film City: A state-of-the-art Hi-tech Film City will be established in Poonamallee near Chennai, spanning approximately 150 acres, at an estimated cost of Rs.500 crore.
Adyar River Restoration: Restoration and beautification of the Adyar River will be undertaken through the Chennai Rivers Restoration Trust at an estimated cost of around Rs.1,500 crore, implemented through public-private partnership.

Urban Greening Project: A new project involving the Green Tamil Nadu Mission, NGOs, and community participation will be implemented.
24x7 Drinking Water Supply: Projects for providing uninterrupted 24x7 drinking water supply will be initiated in Madurai and Salem Corporations.

Water Supply

Hogenakkal Water Supply Scheme: The second phase of the Hogenakkal combined water supply scheme will be undertaken at a cost of Rs.7,890 crore.
Kollidam River Supply Scheme: A combined water supply scheme using Kollidam River as the source will be implemented for Perambalur Municipality and SIPCOT Industrial Complex at Erayur and Padalur in Perambalur District at an estimated cost of Rs.366 crore.
Namakkal Water Supply Scheme: A combined water supply scheme will be implemented using the Cauvery River as the source to provide clean drinking water to approximately two lakh residents in Namakkal district at a cost of Rs.358 crore.
Vaigai River Supply Scheme: A combined water supply scheme with Vaigai as the source will be undertaken to benefit approximately six lakh residents in Dindigul Corporation and nearby areas at a cost of Rs.565 crore.

Women Welfare

Kalaignar Magalir Urimai Thittam: Rs.1,000 per month is being directly deposited in the bank accounts of 1.15 crore women heads of households.
For that Rs.13,720 crore allocated.

Vidiyal Payana Thittam: Free bus travel for women to be extended to hilly areas of Nilgiris, Kodaikanal, and Valparai.

Moovalur Ramamirtham Ammaiyar Puthumai Penn Thittam: Extended to girl students in Government-aided schools in Tamil medium with Rs.370 crore allocated.

Chief Minister’s Breakfast Scheme Expansion: Will include Government-aided schools in rural areas, benefiting around 2.5 lakh students from Class I to Class V.
Nutritional Kits: Provided to mothers of severely malnourished children aged 0 to 6 months.
New Anganwadis: 500 new anganwadis to be constructed at a cost of Rs.70 crore.
Thozhi Hostels: New hostels in Chennai, Coimbatore, and Madurai at a cost of Rs.26 crore, benefiting women.

Educational Support for Transgenders: All educational expenses including tuition and hostel fees will be covered for transgender individuals pursuing higher education.
Model Home 'Poonjolai': To be set up in Coimbatore with various amenities for women.

School Education

New Classrooms: Construction at a cost of Rs.1,000 crore.
Smart Classrooms: Establishment of 15,000 smart classrooms at an estimated cost of Rs.300 crore.

Higher Education

Civil Infrastructure: Upgrades in Government Arts and Science colleges, Engineering colleges, and Polytechnics at a cost of Rs.200 crore.
Integrated Learning Systems: Computers and scientific equipment provided to 236 Government educational institutions at a cost of Rs.173 crore.
Grand Library and Science Centre: To be set up in Coimbatore, named after Muthamizh Arignar Kalaignar.

Naan Mudalvan

New Skill Labs: Established in 100 Government and Government-aided Engineering, and Arts and Science colleges at a cost of Rs.200 crore.
Training for Competitive Exams: 1,000 candidates will receive quality training for six months in Chennai, Coimbatore, and Madurai regions. Rs.6 crore allocated.
Tamizh Pudhalvan Scheme: To help boys from poor and marginalized backgrounds realize their dreams of higher education, benefiting around 3 lakh students at a cost of Rs.360 crore.