Friday, March 22, 2013

Tamil Nadu Budget 2013-14


             Presenting a revenue-surplus budget for the third time in a row, the All India Anna Dravida Munnetra Kazhagam government reiterated its emphasis on the primary sector, infrastructure development and allocation for social sector, even while adhering to fiscal prudence in its budget for 2013-14. Despite the State feeling the pinch of the economic slowdown, severe drought and power shortage, the government announced new initiatives in agriculture; Rs. 2,000 crore for Infrastructure Development Fund; packages for micro, small and medium enterprises as well as promotion of industrial growth in southern districts and stepped up expenditure in the social sector.


Better roads, more flyovers and no new taxes — these are the happy highlights of TN budget 2013-14, which set apart a lion’s share (Approx Rs. 16, 000 cr) for school education.
In the backdrop of a failed monsoon and severe drought, coupled with an economic slowdown and waning investor confidence, Finance Minister Mr. O Panneerselvam presented a budget that seeks not to burden the people. School education got the maximum allocation of Rs.16,965 crore.
Chennai is set to get four more flyovers, based on the recommendation of the Chennai Metropolitan Development Authority’s traffic-transportation study. Panneerselvam, however, did not spell out their locations. He has earmarked Rs.500 crore for the Chennai mega city development programme and Rs.750 crore for the urban development mission.
The government also proposes to take up restoration of waterways and rivers in the city under the aegis of the Chennai Rivers Restoration Trust, by raising funds from external sources.
Four-laning of the East Coast Road from Chennai to Mamallapuram will begin this year, he said. A world class oceanarium has been announced for Mamallapuram at a cost of Rs.250 crore under public-private partnership. While the tourism department will implement the project, the fisheries department will provide technical assistance.
Of the overall allocation of about Rs. 17,221 crore for the primary sector, the share of agriculture had been increased to Rs. 5,189 crore. In continuance with the present regime’s policy of according greater importance to animal husbandry, the allocation had been hiked to about Rs. 1,083 crore, 240 per cent higher than what the sector got three years ago. The crop loan target under the cooperative sector would go up to Rs. 4, 500 crore, Rs. 500 crore more from the previous year.
Making it clear that the government would continue to implement the universal public distribution system irrespective of the fate of the National Food Security Bill, the State government maintained its provision of Rs. 4,900 crore for food subsidy. The Special PDS, through which pulses and edible oil were being sold at concessional rates, would be extended up to March 31, 2014. The Price Stabilisation Fund, meant for procuring and distributing essential commodities at cost price, would have Rs. 100 crore hereafter.
Apart from earmarking Rs. 2,000 crore for the Infrastructure Development Fund and Rs. 200 crore for the Project Preparation Fund, the Finance Minister informed the Assembly of the World Bank’s nod for the second phase of the Tamil Nadu Road Sector Project, estimated to cost Rs. 8,580 crore. On the lines of the National Highways Authority of India, a State Highways Authority would be formed to take up projects on major State Highways.
Four units of thermal power projects would be commissioned between May 2013 and March 2014, even as three other units had commenced trial production. The new projects would produce 3,230 megawatt (MW). Government buildings would have solar installations at a cost of Rs. 11.7 crore.
On solid waste management (SWM), the government made it clear that villages adjoining urban areas could be part of SWM projects implemented in the urban areas. A special SWM Fund would be created with Rs. 100 crore for financing projects in weak urban local bodies.
The Finance Minister said the government would soon come out with a special package of incentives for encouraging investments for the development of the industrially backward southern districts. This, he said, was expected to trigger creation of jobs and economic development in the southern region. The government would also give a push to the development of the Madurai-Tuticorin industrial corridor during 2013-14. The project is a significant component of Vision 2023 Document unveiled by Chief Minister Jayalalithaa for the overall development of Tamil Nadu. The document envisages an investment of Rs. 15 lakh crore in 10 years in agriculture, irrigation, urban infrastructure and transport sectors and in development of human capital.
It has been proposed to create four manufacturing regions, one agri-business region, two business investment regions, a special tourism zone, one rural tourism hub and one knowledge hub in the Madurai-Tuticorin corridor. This, would attract investments to the tune of Rs 1.9 lakh crore over 10 years.
Another gift to south Tamil Nadu was the formation of a ship building yard at Tuticorin by the Tamil Nadu Industrial Development Corporation under public-private partnership. The Finance Minister announced the creation of a fish processing park in Ramanathapuram district and upgrading of Tuticorin fishing harbour.
An allocation of Rs. 214.54 crore was made for the major combined water supply schemes in eight districts, including Madurai, Virudhunagar and Sivaganga.
A regional cancer centre would come up at the Tirunelveli medical college hospital. A similar centre has already been sanctioned for the Government Rajaji hospital, Madurai.
Work on the long awaited flyovers to minimise traffic congestion in Madurai city is to take off during 2013-14 at Goripalayam and Kaalavaasal. The project is estimated to cost Rs. 130 crore.





 Budget Highlights:-

Ø     Economic growth low at 4.61% (all due to electricity power shortages which affected all the sectors privately)
Ø     AADHAR scheme to be implemented across Tamil Nadu
Ø     17, 138 police to be recruited in 2013-14
Ø     Industries in Southern Districts will get concessions
Ø     Village based BPOs allocated Rs. 10 crore
Ø     East-Coast road to be a 4-lane highway
Ø     4 big bridges in Chennai
Ø     2 bridges in Madurai
Ø     TN Highways Authority will be formed in line with NHAI
Ø     Rs. 500 crore allocated to TN transport to buy diesel
Ø     3730 MW of electricity to be generated soon
Ø     Rs. 352 crore to be given to sugar mills to produce electricity
Ø     Rs. 21000 crore for electricity projects
Ø     International Maritime Museum at Mamallapuram
Ø     SRDH (State Residents Data Hub) to be implemented in Pudukottai district as a pilot project
Ø     All schools in TN will get toilet and water facilities within 2013-14
Ø     Rs. 500 crore allocated for Hogenekal Water Project
Ø     Rs. 750 crore for Chennai Metro project
Ø     TN got the approval of Rs. 669 crore under NADP during 2012-13 (Highest allocation ever received by any State in India) {NADP – National Agriculture Development Program}
Ø     2 lakh house site pattas to be distributed in 2013-14
Ø     Rs. 100 crore allocated for TN State Rural Livelihood Mission
Ø     Rs. 200 crore allocated for TN Urban Livelihood Mission
Ø     A sum of Rs. 5 crore has been provided to the Entrepreneurship Development Institute for training the youth
Ø     Rs. 200 crore for the Project Preparation Fund have been provided in the Budget Estimates 2013-14

Departments
Highlights
Agriculture
Rs. 5,189.15 crore allocated for agriculture, which is the highest ever allocation for agriculture in TN budget
Special focus will be given to increasing the area under vegetable cultivation to 8.2 lakh acres from the existing 7.25 lakh acres.
Infrastructure facilities would be upgraded in select agricultural markets and they will be functionally integrated at a cost of Rs.15 crores using the NADP funds.
Animal Husbandry
During 2013-2014, 12,000 milch cows and six lakh sheep and goats will be distributed to 1.5 lakh poor women. A sum of Rs.250 crores has been provided for this purpose.
During 2013-2014, another 100 veterinary sub-centres will be upgraded into veterinary dispensaries.
The milk procurement by the District Co-operative Milk Producers Unions has reached a high level of 27.14 lakh litres per day during the peak season.
Fisheries
In order to promote deep sea fishing, the existing 25% subsidy will be enhanced to 50% to fishermen for procuring new tuna long-liners and a sum of Rs.30 crores will be set apart for this purpose.
Fishing harbours are being upgraded at Cuddalore, Pazhayar, Nagapattinam and Thoothukudi.
A modernised fish landing centre will be developed in Mudasalodai in Cuddalore District at a cost of Rs.7.78 crores.
Two fish processing parks will be established at Ramanathapuram and Thiruvallur districts in the coming financial year through Public Private Partnership.
Food Security
Government will also off-load one lakh MT of rice in the open market for sales at Rs.20 per kg through Amudham, the co-operatives and special outlets to control the price of rice.
To control vegetable prices, farm fresh consumer outlets will be opened in urban areas by the co-operatives and the Horticulture Department, linking farmers to consumers directly.
Irrigation
Government has already proposed the Cauvery Delta Area Improvement Scheme costing Rs.1,560 crores to the Asian Development Bank to mitigate the impact of climate change. The project components include reconstruction of tail end regulators and improvement of drainage channels in the Cauvery Delta Area.
The project agreement for implementing the Dam Rehabilitation and Improvement Project (DRIP) has already been signed with the World Bank.
State has gone ahead with its own intra-state river linking schemes. The works for the Thamiraparani- Karumeniar-Nambiar link and the Cauvery-Gundar link with the Kattalai Barrage are in progress and Rs.156.44 crores has been allocated in the Budget 2013-2014 for these ambitious initiatives of the State Government. Also necessary action for the early commencement of the third intra state river linkage scheme; the Pennaiyar-Palar Link project.
Industries
The manufacturing sector of the State contributes 10% of the country’s total manufacturing capacity.
Government will create a land bank of 25000 acres through SIPCOT to attract more industries to the State.
A new ship building yard will be established in Thoothukudi by the Tamil Nadu Industrial Development Corporation (TIDCO) under Public-Private Partnership.
In 2013-2014, the Government will give a push to the development of the Madurai-Thoothukudi Industrial Corridor. The project proposes to create four manufacturing regions, one agri-business region, two business investment regions, a special tourism zone, one rural tourism hub and one knowledge hub. This will attract Rs.1,90,000 crores of industrial investment over a period of 10 years.
A special package of incentives for encouraging investments for the development of the industrially backward districts of southern Tamil Nadu will be announced soon.
The Tamil Nadu Investment Promotion Programme (TNIPP) with the assistance of JICA (Japanese International Cooperation Agency), will commence during 2013-2014. The TNIPP aims at easing some bottlenecks faced by the investors, mainly by policy changes and by correcting infrastructural inadequacies. This will facilitate the investment flow of around Rs.770 crores for investment in small and medium infrastructure projects over three years.
To stimulate and revitalise the Micro, Small and Medium Enterprises sector, the package will be unveiled soon.
The New Entrepreneur cum Enterprise Development Scheme (NEEDS) is being implemented from 2012-2013. Under this scheme, the Government provides 25% capital subsidy on investments besides training and consultancy support. In the Budget Estimates 2013-2014, Rs.100 crores has been allocated for the NEED Scheme and 50% of this has been earmarked for women beneficiaries.
Environment
A sum of Rs.100 crores was allocated for the Environment Protection Fund (EPF) during 2012-2013, for laying roads using plastic waste. In 2013-2014, Rs.100 crores is again being provided to this fund.
Information Technology
For promoting rural Business Process Outsourcing (BPO) centres, Rs.10 crores has been allocated
Highways
Work on four laning the East Coast Road from Chennai up to Mamallapuram will commence during 2013-2014.
4 big flyovers in Chennai; 2 flyovers in Madurai
TN obtained the approval of the World Bank and the Government of India for the second phase of the Tamil Nadu Road Sector Project. This project would be the biggest externally aided project implemented by the State so far, at a total cost of Rs.8,580 crores and covering 1,678 km. The project will improve and develop road links having very high intensity traffic. These works will commence from 2013-2014.
A new "Tamil Nadu State Highways Authority" will be established on the lines of the National Highways Authority of India and major State Highways will be entrusted to it so as to give more focused attention to their formation, quality maintenance and management, as per global standards.
Transport
Government had provided Rs.200 crores during 2012-2013 to absorb the additional fuel costs of STUs (State Transport Undertakings) without passing the burden to the common man. To compensate the STUs for these additional fuel costs, a sum of Rs.500 crores has been provided in the Budget Estimates 2013-2014.
A study on the Multi Modal Transport Integration in Chennai City will be taken up
Rs.750 crores has been provided for Chennai Metro Rail.
Energy
The Government is taking several steps to improve power supply in order to provide uninterrupted quality power to the consumers.
Tamil Nadu has the highest installed renewable energy capacity in the country. 12.6% of the total electricity used by the State comes from wind alone.
Tamil Nadu has also made pioneering efforts to establish bagasse based co-generation projects in co-operative sugar mills to generate 183 MW of power. During 2013-14, the Government has sanctioned Rs.352 crores as finance the co-generation plants in various sugar mills of the State.
The Tamil Nadu Generation and Distribution Company Ltd., (TANGEDCO) has invited bids to supply 1000 MW solar power through competitive bidding. About 226 MW has been tied up with the power generators under this bid. Further, the existing Government buildings will be provided with solar installations at a cost of Rs.11.70 crores by earmarking Rs.5 lakhs out of the Member of Legislative Assembly Constituency Development Scheme (MLACDS) funds for each assembly constituency.
During 2013-2014, the Government has allocated Rs.12,197 crores for TANGEDCO
Tourism
A special tourism project, strengthening the infrastructure in selected tourism spots in the eastern tourism circuit and the southern tourism circuit, is being implemented with the financial support of the Asian Development Bank at a cost of Rs.450 crores from 2012-2013.Under this project, infrastructure will be strengthened in select tourism centres at a cost of Rs.67.91 crores during 2013-2014. Further, State fund of Rs.10 crores will be used for publicity to popularise “Destination Tamil Nadu 2014”during 2013-2014.
A world class oceanarium at Mamallapuram at a cost of Rs.250 crores through the Tamil Nadu Tourism Development Corporation under Public-Private-Partnership.
A new Field Fossil Museum will be established at Ariyalur at a cost of Rs.2 crores.
Health & Family Welfare
Rs. 750 crores has been allocated to the Chief Minister’s Comprehensive Health Insurance Scheme
Rs. 720 crores has been allocated to the Dr. Muthulakshmi Reddy Memorial Maternity Assistance Scheme
Rs. 77.59 crore has been allocated to the free pick up and drop back facilities made available through 108 ambulances and Government ambulances.
The Government has decided to establish two more regional cancer centres in Thanjavur and Tirunelveli Medical College Hospitals at a total cost of Rs.30 crores (Already the regional cancer centres are at Madurai and Coimbatore).
Tamil Development
A special grant of Rs.2 crores will be given to the Tamil University, Thanjavur, to improve the existing infrastructure.
School Education
A sum of Rs.16,965.30 crores is provided in the Budget Estimates 2013-2014 for the School Education Department, which is the highest among all departments.
In order to contain drop-outs and to improve student retention ratio at the secondary school level, the Government is giving special cash incentives to students studying in the 10th, 11th and 12th standards and 24.76 lakh students will receive a cash benefit of Rs.381 crores during the year 2013-2014.
For the year 2013-2014, Rs.700 crores is provided under SSA (Sarva Shikshya Abhiyan)
100% coverage of all schools with safe drinking water supply and toilet facilities before the end of 2013-2014.
Higher Education
The Indian Institute of Information Technology (IIIT) will function from the academic year 2013-2014 in the campus of Bharathidasan Institute of Technology (Trichy).
8 more Arts and Science Colleges, will function from 2013-2014.
The enrolment of students in higher education went up from 6,09,915 in 2010-2011 to 6,51,807 in 2012-2013.
Free laptop
A total number of 5.65 lakh laptop computers will be given to students during the academic year 2013-2014. An allocation of Rs.1,500 crores has been allocated for this.
Rural Development
60,000 solar powered green houses will be constructed.

MGNREGS: For the year 2013-2014, the allocation to the State stands at Rs.6,341.80 crores. With effect from 1.4.2013, the daily wage rate payable under this scheme will be raised from Rs.132 to Rs.148, which is Rs.16 higher than the current year.
Urban Development and
Water Facility
Rs. 500 crore allocated for Chennai Mega City Development
Rs. 750 crore allocated for Urban Development Mission
Rs. 500 crore allocated for the speedy completion of the Hogenakkal water Supply and Flurosis Mitigation Project
Adi Dravidar & Tribal Welfare
Chief Minister has launched a special project for Tribal development under which 5 new ITIs were sanctioned in tribal areas viz. Jamunamarudur, Kolli hills, Anaikatti, Pachaimalai and Kalrayan hills besides taking up various other works. An amount of Rs.50 crores has again been provided in the Budget Estimates 2013-2014





Welfare of women & Children
Rs. 750 crores has been provided for the scheme of distributing a 4 gm gold coin for the Thirumangalyam along with enhanced marriage assistance
Rs. 105 crores has been allocated for the Girl Child Protection Scheme for the Year 2013-14
Rs. 34.26 crores has been provided for special incentives for girl students
Rs. 6000 crores of credit assistance to Self Help Groups during the financial year
For 2013-2014, the Government has allocated Rs.1,492.86 crores for the implementation of the Noon Meal Programme so as to benefit 53.53 lakh children.
Rs.4.30 crores has been provided in this Budget for the supply of colour uniforms to Anganwadi children.
Differently abled
Rs.131.05 crores has been allocated in the Budget Estimates 2013-2014 for maintenance allowance to the severely disabled, the mentally challenged and muscular dystrophy affected persons.
Sri Lankan Tamil refugees
Government has already extended all welfare schemes to the Sri Lankan Tamils living in the various refugee 60 camps in the State and has also hiked the cash assistance given to them. Further, from the coming financial year, the coverage under the Chief Minister’s Comprehensive Health Insurance Scheme will be extended to the Sri Lankan Tamils living outside the refugee camps also.
Pensioners Welfare
Government is proposing to launch a separate Health Insurance Scheme in line with the Government servants Health Insurance Scheme to reduce the burden of health related expenses of the pensioners. Further, the assistance given to each bereaved family under the Tamil Nadu Government Pensioner's Family Security Fund Scheme will be enhanced from Rs.35,000 to Rs.50,000.

School Education:-
Government is providing everything that is necessary for creating a better learning environment. The following allocations have been made in the Budget Estimates 2013-2014.
i. Rs.217.22 crores has been allocated for the supply of text books to 97.70 lakh students.
ii. Rs.110.96 crores has been allocated for the supply of note books to 86.71 lakh students.
iii. Rs.323.70 crores has been provided for free bus passes to cover 14.02 lakh students.
iv. Rs.353.22 crores has been provided to supply 4 sets of uniform covering 53.53 lakh students.
v. Rs.19.79 crores has been provided to supply school bags for 13 lakh students.
vi. Rs.8.47 crores has been provided for supplying footwear to 6.1 lakh students.
vii. Rs.6.65 crores has been provided for supplying geometry boxes, atlases, etc. to 9.67 lakh students.
viii. Rs.200.98 crores will be provided for the supply of bicycles to 6.30 lakh students.
ix. During 2013-2014, Chief Minister ordered the supply of woollen sweaters to 10.30 lakh children in hilly areas at a cost of Rs.4.12 crores.
x. Sanitary Napkins will continue to be supplied to 32.79 lakh girl children during 2013-2014 at a cost of Rs.54.63 crores.
All put together, these benefits to students will cost the State exchequer Rs.1,299.74 crores.
 On Electricity:-

v     The Government is taking several steps to improve power supply in order to provide uninterrupted quality power to the consumers. NTPC-TANGEDCO Joint Venture Project Unit-I at Vallur has already been commissioned and the generation has been stabilised. The MTPS Stage-III (600 MW), NTPC-TANGEDCO Joint Venture Unit-II at Vallur and North Chennai Thermal Power Station Stage II, Unit-II have commenced trial production. North Chennai Thermal Power Station Stage-II, Unit-I (600 MW) will be commissioned in May 2013. The third unit (500 MW) of NTPC-TANGEDCO Joint Venture at Vallur will be commissioned in October, 2013. Two units of 500 MW each of NLC-TANGEDCO joint venture at Tuticorin are expected to be commissioned in December, 2013 and March, 2014 respectively. All these new projects are expected to give an additional generation of 3230 Mega Watt.
v     As already announced, works related to the newly launched power projects viz. Ennore extension for 660 MW, Ennore-SEZ for 2 x 660 MW and Udangudi for 2 x 660 MW at a total investment of Rs.21,000 crores will commence during 2013-2014. Government will continue our efforts to launch new projects keeping in view future energy needs.
 Share in Central Taxes:-
The share of Tamil Nadu in central taxes has also been drastically reduced by over Rs.500 crores. Over the years, the proportion of the State’s share in central taxes is also coming down in state’s overall revenue receipts. The proportion had been as high as 17% in 2007-2008 and has now been reduced to 14.7% in 2012-2013. This trend puts excessive stress on the State’s own resources.

State’s own tax revenue:-
The general slowdown in the economy has affected the tax growth in the State also. Investment sentiment, particularly in the manufacturing sector, has taken a beating. However, the Government is taking all efforts to revive the economy and I am sure that our sagacious policies would ensure the achievement of the budgetary target for tax collection in 2012-2013.

Tamil Nadu Budget 2013-14
(Maximum allocated funds & departments)



Departments
Fund Allocated (Rs in Crores)
School Education
16965.3
TN Road Sector Project
8580
Health & Family Welfare
6511.76
Highways
6452.77
Agriculture
5189.15
Food Subsidy
4900
Elderly, Destitute and Marginalised
3461.75
Irrigation
3314.5
Infrastructure Development Fund
2000
Free Mixie,Grinder,Fan
1500
Noon Meal Programme
1492.86
Animal Husbandary
1082.64
Chennai Metro Project
750
Chennai Mega City Development
500
Fisheries
467.44
Differently Abled
263
Free Milch Cow/Goat/Sheep
250
Veterinary Infrastructure
235
TN Urban Livelihood Mission
200
National Horticulture Mission
140
Sports and Youth Welfare
112.5
SL Tamil Refugees
109.91
TN State Rural Livelihhod Mission
100
State Skill Development Mission
100
Environment Protection Fund
100
Uzhavar Peruvizha
46
Crop Insurance Scheme
42.95
Tamil Development
39.29
Entrepreneurship Development Institute
5

TN Budget 2013-14 (in pdf)


3 comments:

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