Tamil Nadu Finance Minister Palanivel Thiaga Rajan is presenting the General Budget for 2022-23 in the House on March 18, 2022.

 Tamil Nadu Budget Speech part 1

The government is expected to implement a few assurances it made in its election manifesto.

Opposition party AIADMK has walked out of the Budget session of the Tamil Nadu Assembly

| Photo Credit: R. Ragu

This is the second Budget of the DMK government, and is being presented as an e-budget.

Here are the highlights:

1. Tamil Nadu Finance Minister Palanivel Thiaga Rajan, presenting the Budget, said the revenue deficit has been brought down by ₹ 7,000 crore. The revised budget estimate had pegged the revenue deficit at  ₹58,692.68 crore for 2021-22. He said State economy may be impacted due to inflationary pressures, which experts have warned about.

2. Mr. Thiaga Rajan said Chief Minister M.K. Stalin has requested the Centre for extension of the GST compensation period, which ends in June 2022, by two years. He hoped the Centre would consider the same.

Finance Minister Palanivel Thiaga Rajan with Chief Minister M.K. Stalin ahead of Budget presentation. Also seen is Additional Chief Secretary N. Muruganantham. Photo: Special Arrangment/DIPR

3. State government will file a report on actions taken on the recommendations made by the Sixth State Finance Commission, which had recently submitted its report.

4. The ongoing crisis between Russia-Ukraine will cause a demand shock and global supply disruptions to the State’s economy, said Finance Minister Palalnivel Thiaga Rajan while presenting the Budget.

5. A separate organisation will be set up for Climate Change and green initiatives. Funds would be raised from aided institutions.

6. Special Social Media Monitoring Cells will be set up by the government within police department.

7. ₹50 crores have been allocated for ‘Naan Mudhalvan’ scheme, the Chief Minister’s project for upgrading skills of students.

8. Finance minister P.T.R. Palanivel Rajan said that all assistance would be provided to students who have had to discontinue their education in returning from war-torn Ukraine.

9. Fire Department has been allocated ₹496 crore in the Tamil Nadu budget.

10. ₹500 crore is being allocated for flood mitigation projects in Chennai City.

11. To provide quality medical care, the quality of government hospitals in Tamil Nadu will be further enhanced and a budget of ₹1,019 crore has been allocated for this in the budget, the State Finance Minister said.

12. Government announces ‘Project Nilgiri Tahr’ to protect & conserve the ‘State Animal’ of Tamil Nadu.

13. Government annnounces ₹1,000/month allowance for female students, who studied in government schools from Class 6 to class 8, to pursue higher education. The scheme is set to benefit five lakh girl students. The government also allocated ₹250 crore to upgrade government colleges.

14. ₹5 crore has been allocated to translate Periyar’s writings and works in other languages.

15. Mobile information centres would be launched for migrant workers. In the first phase this will cover Kancheepuram, Tirupur and Tiruvallur.

16. A new policy will be released to strengthen leather and footwear industry in the State.

17. The Tamil Nadu government has allocated ₹50 crore for emerging sector seed funds in the State Budget, said Finance Minister Palanivel Thiaga Rajan. Additionally ₹30 crore have been allocated towards TANSIM (Tamil Nadu Start up and Innovation Mission) for promoting start-ups in Tamil Nadu.

18. The State will get 2,000 electric buses. The State Finance Mininter informed the House that Chief Minister Stalin’s scheme to provide free transportation for women (in buses) has worked well. The commuters percentage has gone up from 40℅ to more than 60℅.

19. SOTR (State Own Tax Revenue) falls short of budgetary estimates for 2021-22, as Tamil Nadu was affected by pandemic and floods.

20. Fiscal deficit has been brought down to 3.80% from 4.33% in budget estimates for 2021-22. Revenue deficit estimated at ₹52,781.85 crore in 2022-23. Revenue deficit continued to be brought down.

21. Tamil Nadu Finance Minister Palanivel Thiaga Rajan said 149 Samathuvapurams, which have been neglected without maintenance for the last ten years, will be renovated in the first phase at a cost of ₹190 crore.

22. In order to encourage transit-oriented development (TOD) in certain corridors such as Metro Rail, suburban rail, National Highways and by-pass roads, the Tamil Nadu government has decided to raise the existing Floor Space Index (FSI) in adjoining areas says, Finance Minister Palanivel Thiaga Rajan.

23. To provide quality mental health services, the government has planned to establish a Tamil Nadu Institute of Mental Health & Neuro Sciences, by upgrading the Institute of Mental Health (IMH), Kilpauk. A provision of ₹40 crore has been made for the first phase of this project.

24. New museums will be built this year in Villupuram and Ramanathapuram districts at an estimated cost of ₹10 crore.

25. To generate awareness about forests and wildlife among children from a young age, the Tamil Nadu government has decided to set up a Children’s Nature Park at an estimated cost of ₹20 crore which will house birds, butterflies and animals by remodelling the Guindy Children’s Park. Additionally, the government will set up a botanical garden at a cost of ₹300 crore near Chennai in partnership with Kew Gardens of London.

26. To promote education in Tamil medium, government will provide school kits including textbooks and notebooks, to students of Classes 1 to 10 in private unaided schools which teach exclusively in Tamil medium, from this year onwards, at an estimated cost of ₹15 crore.

27. ₹82.86 crore has been allocated to the Tamil Development Department in this Budget

28. The government has allocated ₹4,816 crore in the Budget for various social security pension schemes such as Old Age Pension, Destitute Widow Pension and Pension for Differently Abled.