On February 19, the State Budget for the fiscal year 2024-25 was introduced by Finance Minister Thangam Thennarasu, just before the upcoming Lok Sabha election.
Given the challenging financial circumstances, observers are eager to see whether the DMK Government prioritizes fiscal responsibility or adopts populist measures, as the Budget is presented under the theme of ‘Crossing obstacles and marching towards growth’.
Focusing on fiscal resilience, economic growth, and social welfare, the strategic allocation of resources aims to position Tamil Nadu as a hub for innovation and sustainable development.
Here are the key highlights:
1. Fiscal Strategy and Economic Growth:
Minister Thenarasu outlined a robust fiscal strategy with a projected nominal GSDP growth of 15.89% for 2024-25. The goal is to transform Tamil Nadu into a trillion-dollar economy by emphasizing infrastructure, welfare schemes, education, and healthcare.
2. Revenue and Expenditure:
Total revenue receipts, including Central Transfers, are estimated at Rs.2,99,009.98 crore, with the State’s Own Tax Revenue pegged at Rs.1,95,172.99 crore. The budget foresees a rise in revenue expenditure to Rs.3,48,288.72 crore, with significant allocations for salaries, pensions, and welfare schemes.
3. Infrastructure and Development:
A substantial Rs.47,681.30 crore is allocated for capital expenditure, focusing on key projects such as the Chennai Metro Rail, water supply schemes, and road development. The state also aims to lead in renewable energy by 2030, demonstrating a commitment to sustainable development.
4. Education and Healthcare:
The budget prioritizes the improvement of education and healthcare services. Initiatives like the Naan Mudalvan programme, expansion of Chennai Metro Rail, and the establishment of new healthcare facilities underscore the commitment to enhancing social infrastructure.
5. Welfare Schemes:
Significant allocations are made for welfare schemes, including the Kalaignar Magalir Urimai Thogai, providing Rs.1,000 per month to women heads of households, and the Chief Minister’s Breakfast Scheme for school children.
6. Disaster Management and Climate Change:
Acknowledging challenges, the budget proposes initiatives like the Tamil Nadu Endangered Species Conservation Fund and the TN-SHORE initiative for coastal restoration, showcasing proactive measures in environmental conservation.
7. Commercial Taxes and Revenue Augmentation:
Revenue augmentation efforts include optimizing commercial taxes, aiming for an estimated collection of Rs.1,43,381 crore. This reflects the administration’s commitment to improving collection efficiency without burdening the populace.
8. Fiscal Deficit and Debt Management:
Despite challenges, the fiscal deficit is contained at 3.44% of GSDP, aligning with fiscal consolidation goals. The state’s debt management strategy ensures sustainability, with outstanding debt expected to be within permissible limits relative to GSDP.
9. Enhancements in Governance:
Modernization initiatives like the Smart Kavalar app for enhancing police services and the e-procurement portal for transparent government procurement highlight the commitment to efficient and accountable governance.
10. Forward-Looking Initiatives:
The budget outlines forward-looking initiatives, including the creation of a Space Industrial and Propellant Park, fostering startups through the Global Startup Summit, and upgrading IT infrastructure. These initiatives position Tamil Nadu on the global map of innovation and development.
Tamil Nadu’s Budget 2024-25 sets a comprehensive roadmap for the state’s economic growth, welfare, and sustainable development, reflecting a proactive and visionary approach. The Complete Speech can be accessed at: Budget Speech of Thiru. Thangam Thenarasu, Minister for Finance and Human Resources Management, Government of Tamil Nadu
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