TAMIL NADU BUDGET 2019 - 2020

• Tamil Nadu deputy Chief minister O. Panneerselvam presented the AIADMK Government’s third budget in the state for the financial year 2019-20 in the Tamil Nadu Assembly.

• The Tamil Nadu government proposed no new taxes in the state budget for the financial year 2019-20 and an assurance that the revenue deficit will come down in the coming years.

Key Highlights

Farmers

• Organic Certification Centres will be set up in all districts to promote Organic Farming.
• For the farm sector, the government said it will during 2019-20, notify more crops and expand the coverage under crop insurance.
• Further, cloud burst and natural fire will also be included in localised calamities in addition to hailstorm, landslide and inundation.
• For farmers - The government will target Rs 1,000 crores worth to provide as paddy loan.
• Providing subsidy on 2,000 pumps set for farmers worth Rs 84 crores.
• Will issue land paper of ownership for 1.5 lakh people.
• Two lakh hectares will be covered under Micro Irrigation during 2019-20.

Energy sector

• On the energy front, the state-run TANGEDCO will be establishing floating solar power projects in Theni, Salem and Erode with a capacity of 250 MW at an estimated Rs 1,125 crore.

• The recently unveiled Tamil Nadu Solar Energy Policy 2019 will increase the solar power generation capacity to 9,000 MW by 2023.
• Amma Green Gramam, sustainable energy villages with mini rural renewable energy parks will be set up.

Health sector

• 12,563.83 crore allocated to Health and Family Welfare Department. An essential diagnostics list, a set of diagnostic tests at each level of healthcare will be set up.
• Tamil Nadu Health Systems Reforms Programme will be launched with World Bank's support, to improve the access of poor and the disadvantaged to the government health facilities.

Chennai Metro Rail

• Phase-I of the project covering two corridors running to 45 km will be fully commissioned by this month while its extension was expected to be on stream next June.

• Feasibility study was being taken up for the extension of Metro rail line from Meenambakkam Airport to Kilambakkam metro bus terminus in the southern suburbs.

Tourism

• In the tourism sector, the government will launch a 'massive' promotion project by identifying specific circuits for western, Asian and domestic tourists with quality amenities and infrastructure.

• Tourism-centric infrastructure like hotels will be upgraded under the Private-Public-Partnership mode.

Liquor sales

• The Finance Minister mentioned that the number of retail Indian Made Foreign Liquor (IFML) shops run by Tamil Nadu State Marketing Corporation (TASMAC) has been reduced from 7,896 to 5,198.
• Incidentally, sale of liquor through such state-run outlets is a huge revenue grosser for the government.

Electric Vehicles

• The government will procure 2,000 new electric buses, besides 12,000 new BS-VI vehicles, at an outlay of Rs 5,890 crore with KfW bank loan assistance.
• The government will introduce 2,000 BS-VI buses in the state, besides rolling out 500 electric vehicles in Chennai, Coimbatore and Madurai, in the first phase.

Housing sector

• The government will take up construction of one lakh concrete houses to replace huts damaged in the Gaja cyclone in November last year, at an estimated Rs 1,700 crore with a central share of Rs 720 crore.
• A comprehensive solid waste management project and a housing scheme for urban poor were also proposed by the Finance Minister.
• 20,000 green houses to be constructed in 2019-20.

 Athikadavu-Avinashi water scheme

• On the ambitious Athikadavu - Avinashi water scheme, The Finance minister said that the government will commence it "soon," adding, a sum of Rs 1,000 crore has been provided in the next year's Budget estimates for the purpose.

Important announcements

• The government also announced a number of initiatives in various sectors including implementing a Rs 2,000 crore comprehensive parking management project in Chennai city.
• It will have underground parking facilities, multilevel parking facilities and on-lane parking to accommodate two lakh four-wheelers and an equal number of two-wheelers.

• In Rameshwaram, new arts and science college will be inaugurated in the name of Dr APJ Abdul Kalam.
• 3,000 scooters for physically challenged people has been planned.
• Tamil seats will be set up in international universities like Harward.
• Rs 100 crores have been allocated to improve Anna University infrastructure.
• Rs 55 crores allocated for the development of Tamil language.
• Rs 5,259 crores have been allocated for producing electricity from Perungudi and Kodungaiyur garbage warehouse.
• Additional Rs 43 crores allocated for dam renovation, adding to the previously allocated Rs 745 crores. More than 89 dams have been renovated in this project.
• Rs 300 crores have been allocated, for Adyar and Kovalam River Rehabilitation project.
• Government proposes to distribute 240 units of Navic, 160 units Isat-2 satelite phones and 160 units of Navtex instruments to deep sea fishing boats.
• 5,269 crore has been allocated for producing electricity from effluents.
• The state govt has earmarked Rs 25 crore to support NGOs for starting new schools in interior tribal areas for the benefit of tribal students.
• The industrial estates in Thirumudivakkam and Alathur will be further expanded to meet the growing demand of land for new MSME units.
• The Tamil Nadu government in its budget has said that it would set up a "CENTRE OF EXCELLENCE" under TNeGA (Tamilnadu electronic Governance Agency) to harness artificial intelligence, big data, machine learning, drones and IoT.
• Accident cum life insurance scheme, covering all BPL families, to substantially hike compensation to Rs.2 lakh and Rs.4 lakh for natural death & death due to accident respectively & Rs.1 lakh for permanent disability to be launched
• 9,975 personnel will be recruited this year for Uniformed Services.
• French food processing to set up in integrated industrial park near Chennai at an investment of Rs 2,000 crore.
• Rs 116 crore has been allocated for groynes in Kanyakumari district.
• 38,000 dwelling units to be constructed for people living by riverside in Chennai.
• A special scheme - Chief Minister's Scheme for Augmentation of Fruits and Vegetables will be implemented at a cost of Rs.50 crore.

Revenue Deficit

• The growth in the State's Own Tax Revenue (SOTR) in 2017-18 was 9.07 per cent and this was expected to exceed 14 percent during the current fiscal.
• Due to the positive trends in tax receipts, the revenue deficit for the year 2019-20 is expected to come down to Rs 14,315 crore.
• With higher SOTR growth, coupled with the phasing out of the impact of UDAY and pay revision, the state expects to bring down the revenue deficit in the coming years.

Fiscal Deficit

• 2019-20 Tamil Nadu government's fiscal deficit expected to be Rs 44,176 crores.
• It will be 2.56% of state GSDP, below the norm of 3% fiscal norm.

 Facts and Figures

• 82,673.22 crore allocated for various welfare schemes in 2019-20.
• Rs 55,000 crores allocated for Public Servant pensioners, and Rs 29,627 crores for pension benefits.
• Rs 28,577 crores will be allocated for the school education department of Tamil Nadu.
• Rs 825 crores have allocated for State disaster management.
• Tamil Nadu borrowed around Rs 44,000 crore in 2018-19, state will borrow Rs 43,000 crore in 2019-20.
• State economic growth is estimated at 8.1 per cent.
• Commercial tax revenue is estimated to be at Rs 96,177 crore.
• Non-tax income estimated at around Rs 13,000 crore.
• Revenue for the financial year 2019-20 is estimated to be at Rs 1,97,721 crore.
• Expenditure is estimated to be at Rs 2,08,671 crore.
• The outstanding debt at the end of March 2020 will be Rs.3,97,495.96 crore and debt to GSDP ratio would be 23.02 per cent, which is well within the debt-GSDP norm of 25 per cent.
• Interest expenses is likely to be Rs 33,000 crore in the coming financial year.
• The per capita income of the state has increased from Rs 1.03 lakh in 2011-12 to Rs 1.42 lakh in 2017-18.
• TN govt estimates tax revenue to increase by 14 per cent in 2019-20.

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