Budget 2003 - 2004

Welfare of Scheduled Castes, Scheduled Tribes, Backward Classes, Most Backward Classes, Denotified Communities and Minorities

 

111.   Development of human resources includes special attention to the welfare needs of particular social groups.  It shall be our effort to implement programmes for the benefit of these groups to enable them to participate in the mainstream development process.

112.    The outlay for the Welfare of Scheduled Castes and Scheduled Tribes for the year 2003-2004 would be Rs.439.05 crores.  Members of the House will be happy to know that the earlier loan scholarship scheme has been replaced by a grant special scholarship scheme to enable the students belonging to Scheduled Castes/Scheduled Tribes to pursue higher education.  This has been welcomed widely.  The Budget includes an allocation of Rs.18.28 crores for school education under the Special Component Plan. The Budget also includes provision for construction of 150 new hostel buildings in the year 2003-2004 at a cost of Rs.47.25 crores. The laudable scheme for supplying  bi-cycles to Scheduled Caste/Scheduled Tribe students in Higher Secondary Schools, which was introduced by our Hon'ble Chief Minister, Puratchi Thalaivi  J Jayalalithaa has been very well received.  In the current year 47,980 bi-cycles were distributed to the beneficiaries.  A provision of Rs.7.49 crores has been made in the Budget for this scheme to benefit the new entrants to Class XI in the Higher Secondary Schools.  A provision of Rs.6 crores has also been made under the special incentive schemes for promoting literacy among Scheduled Caste/Scheduled Tribe girl students.

113.    The poverty alleviation Action Plan of THADCO will cover 1.59 lakh beneficiaries in the coming year.  This will open up avenues for self-employment for the people living below the poverty line amongst Scheduled Caste/Scheduled Tribe communities.  The whole process of implementing this plan has been decentralised with the District Collectors being incharge of implementing the plan.  We have also taken up the issue of facilitating credit flow from commercial banks after removing the bottlenecks and we hope to make good progress in the coming year. 

114.   The Budget includes several special programmes for Backward Classes, Most Backward Classes, Minorities and Denotified Communities.  100 new hostel buildings will be built at a cost of Rs.31.50 crores.  Drinking water facilities will be provided in 48 Kallar Reclamation Schools in the coming year.

115.   Tamil Nadu Backward Classes Economic Development Corporation has undertaken several programmes for providing self-employment opportunities to the members of these communities.  In the year 2003-2004, we shall enable a large number of persons from Backward Classes and Most Backward Classes communities to be self employed.  Those  belonging to minority communities have also been extended financial assistance in the current year.  These programmes will be intensified  in 2003-2004.

SOCIAL SAFETY NET

 

116.      I have referred to six broad themes of development in this Budget.  One important theme relates to the provision of a social safety net. The process of liberalisation of the Indian economy began in 1991.  Since then many structural changes have taken place in the national economy.  It is necessary that we have adequate safety cover to cushion the people from any adverse effects of the process of economic restructuring.   The poor and the disadvantaged groups have to be protected.  It is with this far reaching vision that the Hon’ble Chief Minister, Puratchi Thalaivi  J Jayalalithaa initiated the concept of a social safety net during our previous term in office, to protect the poor and the needy during the structural adjustment process. This Government will be taking necessary action to further strengthen the social safety net in Tamil Nadu.  The Budget Memorandum includes a special annexure, which highlights the outlays on the social safety net.   The total provision in the Budget for 2003-2004 towards the social safety net is Rs.4232.29 crores.  It includes expenditure towards protecting basic services for the poor and needy during this period of economic transition and special support for the disadvantaged.  It will be our unwavering effort to preserve, protect and enhance this social safety net.

 

WELFARE OF WOMEN, CHILDREN, ELDERLY AND THE DISABLED

 

117.    The Hon'ble Chief Minister has outlined the 18-Point Programme, which sets out the policy objectives of the Government for the empowerment of women and the advancement of children in the State.  The thrust areas include eradication of female infanticide, reduction of maternal infant mortality, early childhood care and development, elimination of child labour, compulsory schooling together with special packages for economic self-sufficiency through skill attainment and Self Help Group formation.  We have initiated action under all the 18 points of this programme.

118.    I would like to refer to the tremendous progress achieved in encouraging the formation of women Self Help Groups in Tamil Nadu.  There are, at present, 1.22 lakh Self Help Groups with a membership of 20.84 lakh women with total savings estimated at Rs. 277.54 crores.  It is our objective to facilitate the formation of 25,000 new Self Help Groups in the coming year with an additional enrolment of another 5 lakh women.  We have provided Rs.22.50 crores in the Budget for this programme. The programme for Entrepreneurship Development among women will be continued to cover one lakh women in the coming year.  Nearly 50,000 women will be given vocational and skill training during the next year.

119.     The Cradle Baby Scheme, which is the brainchild of the Hon'ble Chief Minister, has received wide acclaim within and outside Tamil Nadu, and will be continued in 2003-2004.  Another innovative and successful scheme, the revised Girl Child Protection Scheme, will be implemented during 2003-2004 with an outlay of Rs.14 crores.  The Budget also includes a provision of Rs.6.17 crores to clear the applications pending under the old scheme.

120.   Tamil Nadu is the pioneer in nutrition intervention programmes, which forms an important part of the social safety net.  This Government has adopted a life-cycle approach to make Tamil Nadu a hunger-free and malnutrition-free State. It covers beneficiaries comprising pregnant and lactating mothers, infants, school-going children, adolescent girls and elderly beneficiaries.  A sequence of programmes, such as the Integrated Child Development Services, Puratchi Thalaivar MGR Nutritious Noon Meal Programme, the National Nutrition Mission, the Annapurna and Antyodaya schemes and the laudable Annadhanam Scheme in temples, are making this a reality.  Despite the extremely difficult fiscal situation, the Hon'ble Chief Minister has directed that there should be real improvement in the quality of the nutritious noon meal.  With this in mind, the allocation per child for vegetables, condiments etc., has been increased from 23 paise to 35 paise at an additional cost of Rs.20.98 crores.  New stainless steel tumblers and plates will be supplied to the beneficiaries under the Noon Meal Programme and a provision of Rs.1 crore has been made for this purpose. We have to involve the village communities in the proper functioning of the noon meal centres, both at the pre-school stage and in schools, and necessary arrangements will be made for this purpose.

121.    The Census for 2001 reveals a steady growth in the number of the elderly as a proportion of the total population in Tamil Nadu. We have to take all measures necessary to enable our senior citizens live a life of dignity. In addition to the various old age pension schemes, the Budget for 2003-2004 makes a provision of Rs. 16.80 crores for supply of free sarees and dhoties to Old Age Pensioners. The Government proposes to examine the possibilities of providing a productive engagement to the elders in our State in the existing nutrition and child care centres. We will continue to encourage voluntary agencies to set up affordable old age homes for the elderly.

122.    Welfare of the disabled will continue to receive a high priority. A detailed survey of the physically challenged people in the State is currently underway. A State Resource Centre would be set up shortly. We will focus on training of rehabilitation workers  to meet the special requirements of the disabled. Various existing schemes for training of the physically disabled will be restructured and streamlined based on an assessment of potential. The Budget for 2003-2004 makes a provision of Rs. 1.38 crores for maintenance allowance to severely disabled persons. A provision of Rs. 2 crores has also been made under the National Programme  for Rehabilitation of Disabled persons.

SOCIAL SECURITY

123.   Social security schemes include support for several groups, particularly the unorganised labour.  They cover fishermen, weavers, and artisans among others.  We have to address the broad issue of providing social security to all these groups.  This includes access to minimum pension and adequate health care.

124.  The Government's own primary and secondary health care system is available to all those desiring free access to medical care, especially those living below the poverty line. In addition, the Union Government has announced a new Health Insurance Scheme for households living below the poverty line. The Government will study the details of this scheme and extend it to the vulnerable groups.  The Government of India has announced a new pension scheme to be launched by the Life Insurance Corporation of India, where the minimum monthly pension will be Rs.250/- and the maximum will be Rs.2000/-  per month.  We propose to have a Task Force which will examine how to enroll all the unorganised labour under this pension scheme so that social security cover is made available to the needy.

125.   The Government of Tamil Nadu provides pension directly from the Budget to various vulnerable groups.  There are an estimated 12.92 lakh beneficiaries under these schemes. The Budget includes a provision of Rs.325.61 crores for this purpose.

TAMIL DEVELOPMENT

126.    This Government is committed to protecting and preserving the rich cultural heritage of the State.  We will continue to urge the Government of India to adopt Tamil as one of the official languages of the Union. We will work towards protecting our rich historical monuments and the Budget makes a provision of Rs.3.64 crores for this purpose.

WELFARE OF GOVERNMENT EMPLOYEES

127.     This Government recognises the important role played by Government employees in implementing development and welfare programmes of the Government.  Government employees will have to also recognise that at a time of extreme fiscal distress, they have to come forward to share the distress.  It is the policy of this Government to ensure the welfare of its employees. At a time of extreme financial stress, it has been difficult to entertain requests for increases in pay and allowances.  Even so, the Hon'ble Chief Minister has decided to provide one additional installment of Dearness Allowance with effect from 1.4.2003.  This additional installment of 3% of Dearness Allowance will involve a cost of Rs.200.91 crores per annum.  The Hon'ble Chief Minister has also decided that the earlier installment of 4%, which was sanctioned with effect from 1.10.2002 with the condition that 3% would be paid in cash and 1% would be impounded in the General Provident Fund, will be paid fully  in cash with effect from 1.4.2003.  Government employees will no doubt welcome this announcement, as despite the difficult financial situation, this Government has come forward to provide  fully the additional Dearness Allowance.    

128.    It is very easy to give tall promises and not keep these promises. I refer to the decision of the previous Government to proudly announce that arrears would be paid after the implementation of the 6th Pay Commission's recommendations and then defer 60% of the arrears to be paid by a future Government.  We inherited a  situation in which  we found it difficult to even meet  the current  commitments and pay the existing entitlements.  It is impossible to pay the arrears, which have now mounted, to nearly Rs.1800 crores without completely abandoning all development programmes and cutting  the Social Safety Net.  We cannot do this.  Government employees also are  aware that the Government is not at all in a position to pay these arrears.  We have carefully examined the position and I wish to announce the following decisions:

  • Arrears on account of Commutation in respect of employees who retired between 1.1.1996 to 31.3.1998, will be paid in three equal annual installments with interest starting from the financial year 2003-2004. 

  • Arrears of the gratuity amount in respect of employees who retired between 1.1.1996 and 31.3.1998 together with interest will be paid to these pensioners in the form of Small Savings Scrips in three equal annual installments over a period of three years starting from 2003-2004.

  • In respect of those who retired between 1.1.1996 and 31.3.2003, 60% of the arrears of pay and allowances with interest will now be blocked into a non interest bearing account from 1.4.2003 and paid in the form of  Small Savings Scrips in three annual  installments starting from 2003-2004.

  • 60% pay arrears in respect of those who are still in service will be retained  in a non interest bearing deposit account from 1.4.2003 and will be paid at the time of retirement in the form of Small Savings Scrips in three equal  annual installments.  For example, those retiring during the year 2003-2004, the first installment of the balance arrears together with interest upto 31.3.2003 will be paid in 2003-2004, the second and third installment will be paid in two subsequent years.

129.   Government employees are aware that the pay arrears cannot be paid at all given  the enormous difficulties faced in balancing the Budget.  The Hon'ble Chief Minister has decided, as a goodwill gesture, that the arrears will be paid on the lines that I have outlined.  Government employees will no doubt greatly welcome the brave effort made by this Government in paying the arrears and thus, honouring even the empty promise made by the previous Government.

130.  Government employees will have to prepare themselves for austerity in expenditure. Administrative reforms will have to be introduced to ensure mobility of employees from one department to another.  Thus, if there is a need for persons in one department, it should be possible to retrain and reorient surplus personnel in other departments.  This adjustment process will be attempted in the year 2003-2004.

 

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