Tamil Nadu Budget 2007-2008 Highlights

Tamil Nadu Budget 2007-2008 Highlights.

In a populist budget which could please housewives, farmers and students, Tamil Nadu Finance Minister K Anbazhagan today announced exemptions from value added tax (VAT), reduction in VAT and a number of concessions, but imposed a hefty four per cent tax on some items used by the industry.

The Tamil Nadu budget 2007-08 showed an uncovered overall deficit of Rs 3.75 crore, a revenue deficit of Rs 101.38 crore and a total fiscal deficit of Rs 7,800.56 crore.
Anbazhagan also announced a two per cent reduction in co-operative farm loans from seven to five per cent.

Kerosene pressure stoves, fertiliser mixture made out of chemical fertilisers, seeds for sowing purposes, pencils, ball pens, ink, pillow covers, bedsheets and towels, note books, geometry boxes, refined oil, used by households on a large-scale have been exempted from VAT.

VAT has been reduced from 12.5 per cent to four per cent on unbranded coffee powder, masala powders, unbranded ghee, plastic goods, audio cassettes, school bags and used cars.
Much to the dismay of industry, Anbazhagan imposed a four per cent tax on superior kerosene oil, molasses, industrial gases and textile machinery.

He also announced setting up of a Special Economic Zone in the backward Virudhunagar district.
He said under-graduate students studying in government arts colleges would be exempted from tuition fees, thereby extending free education to them to college level.

In a bid to strengthen infrastructure, he announced establishment of two shipyards in the private sector at a cost of Rs 3,700 crore at Ennore and Cuddalore.

To give a boost to the flourishing IT industry in the state, Anbazhagan announced that IT Parks would be set up at Coimbatore, Madurai, Tiruchirappalli, Salem

Schwarzenegger plans visit to India

Chennai, March 9:The call of rising India is ringing too clear for American business world not to hear and California's actor-turned-governor Arnold Schwarzenegger, is likely to be next to rrive later this year at the head of a business delegation.

Schwarzenegger may visit India in November, along with a business team from the west coast state, David T. Hopper, US Consul General in Chennai for the south Indian states, said here Friday.He was speaking at a welcome gathering for an American business team touring India as part of the Indo-US Economic Summit.

Business teams from other states in the US will also visit India in the next few months, he said.
Delegations from Virginia, Minnesota and Maryland will tour India to explore further business opportunities and partner with Indian states in development and trade, officials here said.

Speaking to IANS here Friday, Ron Somers, president of the US India Business Council, said: "This visit has been an eye opener and 38 fresh ambassadors are going back to the US to tell the story of India's rising.""The visit of the US business delegation is to commemorate the first anniversary of President Bush's visit to India," Somers said.

"We have visited Kolkata to meet the coalition partners of the West Bengal government and now we are here to look at what Tamil Nadu has to offer. We have been moved by the visit which has been a very helpful one," he added.

Cauvery issue on Parliament

The Cauvery issue is expected to generate much political heat in Parliament in the coming days as Lok Sabha Speaker Somnath Chatterjee will meet MPs belonging to Karnataka and Tamil Nadu on Tuesday. The meeting is expected to decide on the format and date of discussion in Parliament, a move which has been vehemently opposed by Tamil Nadu Chief Minister M Karunanidhi.

An all-party delegation of MPs from Karnataka met Chatterjee last month seeking an early debate against the backdrop of the final award of the Cauvery water disputes tribunal. Karunanidhi, whose DMK is key ally of UPA, shot off a letter to UPA chairperson Sonia Gandhi expressing apprehension that any debate on the issue in parliament could "add fuel to the prevailing unwanted situation.

" The tribunal, which allocated 270 TMC Ft of water to Karnataka, has directed it to ensure release of 192 TMC Ft to Tamil Nadu annually, which gets 419 TMC Ft as its share. The award is being seen by Karnataka as an "injustice" and it wants to raise the issue forcefully in parliament. Karnataka and Tamil Nadu have been at loggerheads for several years on sharing of the river waters. Opposition AIADMK and MDMK MPs met Prime Minister Manmohan Singh last week seeking early notification of the tribunal`s final award in the gazette.

Karunanidhi - Jaya differ on Union Budget

While Tamil Nadu Chief Minister M. Karunanidhi Wednesday said the 2007-08 union budget "had kept the interests of the majority of the people in mind", but former chief minister J. Jayalalitha said it had ignored the interests of farmers.

Karunanidhi said the budget had announced several steps to reduce the prices of essential commodities and welcomed the Rs.500 million-sanction to the Tamil Nadu Agricultural University.Jayalalitha, on the other hand, said the budget had "totally ignored the problem of farmers and also failed to propose any anti-inflationary measures".

Railway Budget: an all round disappointment - Jaya

Describing the Railway Budget as "an all round disappointment," All-India Anna Dravida Munnetra Kazhagam general secretary Jayalalithaa on Monday said though it attempted to carry forward the "reform agenda" in reality it was only an "euphemism for ignoring the common man." "There is nothing substantial in the budget for the farmers and the poor. The poor have been kept out of this budget," Ms. Jayalalithaa said refuting the claims made by Union Railway Minister Lalu Prasad that it was "pro-poor."

Ms. Jayalalithaa said of the 32 new trains announced, the share of Tamil Nadu is only five, which was dismal. Adequate attention had not been paid to the long pending demands of the State such as electrification of lines, doubling of tracks and rail-linked container depots. "It is disappointing that there is no announcement of a dedicated freight corridor for the South. Instead only a pre-feasibility survey has been announced," she said.