No-frills budget in face of Tamil Nadu’s falling revenues

Chennai: Finance minister D. Jayakumar on Thursday offered a finances free of latest taxes and with an emphasis on fund allocation for present welfare schemes, agriculture and enhancement of water assets.

The Fiscal Deficit has been projected at Rs 41,977 crore, which is about 2.79 p.c of GSDP within the finances estimates 2017-2018, he mentioned and added it will be throughout the norms prescribed. Jayakumar mentioned the excellent debt together with provident fund could be Rs three,14,366 crore, which can represent 20.90 per cent of progress of state home product.

In his finances speech within the Meeting, he mentioned the tempo of financial exercise is choosing up and the state GDP is anticipated to develop at 7.94 p.c throughout 2016-2017. He mentioned “the concerted efforts of the state authorities will additional create a beneficial setting for elevated non-public and public funding in key sectors, thus boosting the financial progress to 9 percentp.

Saying a brand new scheme referred to as 'Farmer Producer Organisations', Jayakumar mentioned fragmentation of land holdings is a serious problem to agriculture with 74.47 lakh out of the whole 81.18 lakh operational holdings being small and marginal.

In line with the brand new scheme, small and marginal farmers could be joined as farmer producer teams' which might be federated into 'Farmer Producer Organisations' to advertise collective farming for credit score mobilisation, higher adoption of expertise and to facilitate efficient ahead and backward linkages. In 2017-2018, as a pilot undertaking, 2,000 such teams could be promoted, every comprising not lower than 100 farmers to cowl no less than two lakh farmers with every group getting a corpus fund of Rs 5 lakh in addition to channelising grants and credit score from NABARD and Small Farmer Agri Enterprise Consortium.

To tide over drought state of affairs, the federal government is taking on works like erection of latest deep borewells, rejuvenation of present borewells and open wells, substitute of pump-sets and provide of water by way of lorries at needy areas at a value of Rs 460 crore in rural areas and Rs 150 crore in city areas, he mentioned.

The Minister mentioned a sum of Rs 615 crore had been sanctioned to sort out the consuming water disaster. After enumeration, 32.30 lakh farmers have been recognized as having suffered crop loss over an extent of 50.35 lakh acres. Enter subsidy aid totalling Rs 2,247 crore has been sanctioned and is being launched on to farmers' financial institution accounts.