Tamil Nadu Budget 2019

Tamil Nadu Budget 2019

Tamil Nadu Budget 2019

The Tamil Nadu Government declared the budget for the year 2019-2020 on the 8th of February, 2019. The Tamil Nadu Budget 2019 was presented by the Deputy Chief Minister O Panneerselvam who also oversaw the Finance portfolio, in the Legislative Assembly. Over the course of the previous year, the state suffered various issues including the devastating Cyclone Gaja that hit its coastal and delta districts causing immense damage to life and property. However, with the positive trends in tax receipts, there would be a significant drop in the fiscal and revenue deficit faced at the moment. This article talks about the various aspects of the Tamil Nadu Budget 2019 – 2020.

NOTE: The Deputy Chief Minister O Panneerselvam has concluded the Budget speech by declaring the following highlights at the Legislative Assembly on the 8th of February, 2019. The Speaker has adjourned the Assembly until Monday, 11th of February, 2019. This article will be updated accordingly in real time.

Highlights of the Budget

The following are the highlights of the Tamil Nadu Budget 2019 presented at the Legislative Assembly by the Deputy Chief Minister of Tamil Nadu. The highlights of the Budget has been split into various sectors.

Gaja Cyclone Relief

The following are the highlights that have been declared in the Tamil Nadu Budget 2019 with regard to the Relief from the Gaja Cyclone.

  • An amount of INR 2341.41 Crores has been earmarked for the immediate relief from the aftermath of Cyclone Gaja.
  • The Government promises to build concrete homes for victims who lost their houses in the devastation caused by the Cyclone. The Government aims to make 1 Lakh houses with a total budget of combining INR 980 Crores from the State and INR 720 Crores.

Infrastructure Plans

The following are the highlights that have been announced in the Tamil Nadu Budget 2019 with regard to Infrastructure.

  • An amount of INR 5,259.10 Crores has been allocated in the Budget for the purpose of remediation and reclamation of existing landfills for Perungudi and Kodungaiyur under the Public Private Partnership model. This would also set up waste-to-energy plants that are under consideration.
  • The Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) has been allocated an amount of INR 1125 Crores for the purpose of setting up floating solar power projects in Salem, Theni and Erode with a capacity of 250 MW.
  • TANGEDCO has also been sanctioned an amount of INR 2350 Crores for the Kadaladi Ultra Mega Solar Photovoltaic Park Power Project with a capacity of 500 MW.
  • The Government is all set to unveil the State Urban Housing and Habitat Policy that meets various Sustainable Development Goals. This would ensure access for every individual to adequate, affordable and safe housing and essential services.
  • An amount of INR 79.73 Crores has been set aside for infrastructural purposes for the Tamil Nadu Agriculture University.
  • For the development of Water Resources and Irrigation, an amount of INR 5983.98 Crores has been sanctioned by the Government.
  • An amount estimated over INR 18,000 Crores has been declared by the Government for the development of village and town level local administration.
  • For the development of Municipal Administration and drinking water, an amount of INR 18,700.64 Crores has been sanctioned.
  • The construction of a reservoir has been announced in the Orathur Tributary on the Adyar River with the aim to be a permanent flood mitigation measure and an inter-basin transfer canal. This has been aimed to increase the water supply and to mitigate the floods in Orathur, Sriperumbudur.
  • For the people residing by the riverside in Chennai, 38,000 dwelling units would be constructed as stated as a part of the Budget.
  • Groynes would be constructed in the district of Kanyakumari, and an amount of INR 116 Crores has been declared for this purpose.
  • For the development of highways and small ports, the Budget has allocated an amount of INR 13,605 Crores.
  • A French food processing plant is being set up in an integrated industrial park near Chennai with an investment of INR 2,000 Crores.
  • The State Government has planned to build about 20,000 greenhouses in the year 2019-20 with a budget of 420 Crores.
  • An amount of INR 726 Crores has been set aside for the construction of railway over bridges.
  • INR 100 Crores has been allocated for the infrastructural developments of Anna Varsity.

Business

The following are the highlights that have been declared in the Tamil Nadu Budget 2019 with regard to the IT Sectors.

  • The Stamp Duty on property transfer has been amended to 2% of the market value of immovable properties or 0.6% of the aggregate of the market value of the share, whichever turns out to be higher for the reconstruction of amalgamation of companies.

The Agriculture Sector

The following are the highlights that have been announced in the Tamil Nadu Budget 2019 with regard to Agriculture Sector.

  • An amount of INR 169.89 Crores has been announced for the protection of farmers all around the state by the Tamil Nadu Government.
  • An amount of INR 172.06 Crores has been set aside for agricultural mechanisation.
  • INR 150 Crores has been set aside in the Budget for Horticulture in the State.
  • An amount of INR 258.45 Crores has been set aside for development of dairy in the State.
  • The Fisheries Department has been sanctioned an amount of INR 927.85 Crores as a part of the Budget.
  • The Government has planned the implementation of micro irrigation over 2 Lakh Hectares of land with a budget of INR 1,361 Crores.
  • With the aim to encourage organic farming, the Government of Tamil Nadu has set up Organic Certification Centres in every district.
  • An amount of INR 300 Crores has been set aside for the purpose of desilting of lakes in Tamil Nadu.
  • For the purpose of offering farm loans to those in need of agricultural support, an amount of INR 10,000 Crores has been allocated in the Budget.
  • An amount of INR 1252.4 Crores has been sanctioned for the development of animal husbandry in the State.
  • An amount of INR 100 Crores has been allotted for setting up frozen semen stations for animals.
  • Sugarcane Farmers have been allocated an amount of INR 200 Crores in the Budget.

The Education Sector

The following are the highlights that have been declared in the Tamil Nadu Budget 2019 with regard to the Education Sector.

  • For the development of the State’s language and education regarding the same, an amount of INR 54.76 Crores has been set aside in the Budget.
  • The Tamil Nadu Government has announced the Dr APJ Abdul Kalam Government Arts and Science College that is to be built in Rameswaram in the Ramanathapuram district of the State.
  • The Government has sanctioned an amount of INR 28757.62 Crores for the School Education Department.
  • The Government has sanctioned an amount of INR 4584. 21 Crores for the Higher School Education Department.
  • An amount of INR 766 Crores has been sanctioned to provide students with free bus passes.

The Health Sector

The following are the highlights that have been announced in the Tamil Nadu Budget 2019 with regard to the Health Sector.

  • The Government has launched the Tamil Nadu Health System Reforms Programme with the aim to improve access to health facilities and benefits by the poor and disadvantaged individuals with a budget of INR 2,685.91 Crores.
  • An amount of INR 12563.83 Crores has been allocated for the development of the Department of Health and Family Welfare in the Budget.
  • The Veterinary Department of the State has been allocated an amount of INR 1252 Crores.
  • The Government has declared the provision of essential diagnostics at all Government hospitals for the poor and disadvantaged individuals in the Budget.

Other Sectors

The following are the highlights that have been declared in the Tamil Nadu Budget 2019 with regard to Other Sectors.

  • The Law Department of the State has been sanctioned an amount of INR 1265.64 Crores by the Government.
  • The State has sanctioned an amount of INR 12, 563.83 Crores for the Department of Health and Family Welfare.
  • The Department of Transport has been allotted an amount of INR 1297.83 Crores.
  • The State Government has approved an amount of INR 18560.77 Crores for the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO).
  • Micro Small and Medium Enterprises (MSMEs) in the State has been approved an amount of INR 476.26 Crores in the Budget.
  • An amount of INR 172 Crores has been allotted for the development of rural industries in the State.
  • The Poverty Alleviation Department of Tamil Nadu has been sanctioned an amount of INR 1031 Crores in the Budget.
  • The Housing Department of Tamil Nadu has been sanctioned an amount of INR 6,265 Crores.
  • An amount of INR 1170 Crores has been set aside for providing handlooms to those who require it for their trade.
  • The Government has announced the recruitment of 9,975 personnel for the purpose of Uniformed Services this year.
  • The Tourism Department of Tamil Nadu has been granted an amount of INR 788 Crores in the Budget.
  • The Government of Tamil Nadu has set aside an amount of INR 55,399 for the salaries of its employees.
  • The Budget has included an amount of INR 29,000 for the pension of retired employees in the State.

Schemes and Subsidies

The following are the Schemes and Subsidies that have been declared in the Tamil Nadu Budget 2019.

  • The Tamil Nadu Government has declared to roll out Accident and Life Insurance Schemes for the Below Poverty Line families. This is aimed to increase the compensation given to victims of accidents that occur in the State.
  • The Government offers to support farmers of the State by providing subsidies of 2,000 solar-powered water pumps with a capacity of 10 HP with a budget of INR 84.09 Crores.
  • An amount of INR 3,958 Crores has been sanctioned for Social Security Pension for individuals in the State.
  • INR 621.59 Crores has been sanctioned for a scheme based on crop insurance.
  • INR 1558 Crores has been set aside for the purpose of Rural Drinking Water Schemes.
  • INR 1072 Crores has been announced for the implementation of the Laptop Scheme for students and other eligible individuals.
  • For the provision of Power Subsidy for consumers, an amount of INR 8118 Crores has been announced.
  • The Government has announced a scheme to provide Dhotis and Sarees free of cost with a budget of INR 491 Crores.
  • INR 6,000 Crores has been sanctioned for the implementation of Food Subsidy.

Projects

The following are the projects that have been announced in the Tamil Nadu Budget 2019.

  • The implementation of a comprehensive, integrated parking management project in Chennai with underground and multi-level parking facilities along with on-the-lane smart parking that can accommodate more than 2 Lakh of four wheelers and two wheelers each. This project has been sanctioned a budget of INR 2,000 Crores.
  • To implement the Comprehensive Solid Waste Management Project in the city of Chennai for the purpose of collection and the transportation of solid wastes from eight zones in the City, the Budget has allocated an amount of INR 1,546.04 Crores.
  • An amount of INR 100 Crores has been sanctioned for the provision of essential amenities for the inhabitants of the Scheduled Caste.
  • The Smart City Project has been declared for the State with a budget of INR 1650 Crores.
  • The Chief Minister has announced a new scheme called the Augmentation of Fruits and Vegetables. This ensures the safe storage, transportation and marketing of fruits and vegetables and, an amount of INR 50 Crores has been dedicated to this new objective.
  • The State has declared 240 units of Indian Regional Navigation Satellite System for the clusters, fisherfolk and to equip deep sea fishing boats. Along with this, the State has also announced 160 units of Lsat Phones, 2 Satellite Phones and 160 units of Navtex instruments as well.
  • The Government has declared the implementation of 2,000 battery operated buses which would be purchased with the help of a German foundation.
  • The first round of battery operated buses would be implemented in Chennai, Madurai and Coimbatore with around 500 units released in each place.
  • An amount of INR 1000 Crores has been sanctioned for the Atthikadavu Avinashi integrated project for drinking water.
  • An amount of INR 100 Crores has been sanctioned for the use of any new or innovative development projects.

The Central Interim Budget 2019 and the Kerala Budget 2019 was also declared a few days before the Tamil Nadu Budget 2019.

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