Tamil Nadu Government has proposed no fresh taxes, tax cuts for industrial products and reduction in interest for farm loans in the state budget for the year 2008-09 presented in the Assembly today.
Chennai, Mar 20 : Tamil Nadu Government has proposed no fresh taxes, tax cuts for industrial products and reduction in interest for farm loans in the state budget for the year 2008-09 presented in the Assembly today.
The Tamil Nadu Finance Minister, K. Anbhazagan in his third consecutive budget, announced that the interest on farm loans would be reduced to 4 per cent from the present 5 per cent.
Anbhazagan said Rs.1500 crore new crop loans would be disbursed in the coming year.
He also announced six per cent additional Dearness Allowance (DA) to State Government employees payable from April 1 this year.
All Siddha Medicines would be exempted from tax to encourage the indigenous Siddha Medicinal System, Anbhazagan said.
Some other tax concessions proposed in the budget are: Bun and rusk have been exempted from tax levy. Rubberized textile fabrics is being removed from the tax list, tax on generator used for producing electricity reduced to 4 per cent.
Over 5500 Internet service centres to obtain certification from the Government, will be established to enable people in rural areas to use Internet, the Minister said.
To give a helping hand to children orphaned by AIDS, Anbhazagan said the Government would form a trust with a sum of 5 crore rupees to take care of their welfare.
The Finance minister said special economic zones would be established Tirunelveli, Triuvanamalai, Erode and Vellore Districts to ensure that economic development is not Chennai centric.
Anbhazagan also announced a state health system project to be implemented at a cost of 597 crore rupees. Under the scheme, 227 Government Hospitals will be upgraded and will be provided with medical equipments.
The Finance minister placed the fiscal deficit at 9700 crore rupees and said the overall deficit would be 2.19 crore rupees.
ANI