2. Agriculture is the main occupation of the majority of our population and it is agriculture that sustains the life of the people of our country. In accordance with Saint Thiruvalluvar’s dictum that everything else is secondary to agriculture if one were to list the importance and support this Government has accorded to agriculture, on the very day of assuming charge, this Government had waived all co-operative farm loans, thereby rejuvenating the farm sector. We congratulate the Union Government for following suit in waiving all agricultural loans availed by small and marginal farmers. We hope that the Union Government will provide financial assistance to the State towards co-operative farm loans waived by the Government of Tamil Nadu even before this laudable decision. Following the waiver of co-operative crop loans to the tune of Rs.7,000 crores in the State, this Government has compensated the co-operative institutions by providing Rs.3,304 crores as financial assistance in the last two years and a further sum of Rs.1,150 crores has been allocated for 2008-2009 for the same purpose. Thanks to these measures, new crop loans amounting to Rs.1,250 crores have been disbursed during 2006-2007 and a sum of Rs.1,177 crores disbursed during 2007-2008 so far. It is proposed to disburse new crop loans to the tune of Rs.1,500 crores during 2008-2009.

3. This Government had reduced the rate of interest on crop loans given by co-operative banks from 9 % to 7 % in 2006-2007 and further reduced to 5% in the last Budget. Many agricultural economists have opined that the interest rate on crop loans must be further reduced to 4%. Accepting this recommendation and with a view to providing further fillip to agriculture, the rate of interest on crop loan will be further reduced from 5 % percent to 4 % from the coming financial year.

4. Thanks to the various measures for agricultural development and welfare of farmers taken by this Government after assuming charge, the food production in Tamil Nadu has increased from 61.46 lakh tonnes in 2005-2006 to 82.63 lakh tonnes in 2006-2007. During 2007-2008 also, though several parts of the State have been affected by floods it is estimated that the food production the State will cross 100 lakh tonnes.

5. In addition to enhancing agricultural production, this Government is also committed to ensure that farmers get a fair price for their produce. With a view to ensuring adequate price for the paddy grown by farmers, this Government has provided an additional incentive price of Rs.50 per quintal over and above the incentive price of Rs.100 per quintal announced by the Union Government, thus enhancing the procurement price of fine variety of paddy to Rs.825 per quintal. Based on the just demand that the procurement price of paddy should be on par with wheat and the recent recommendation of the Commission for Agricultural Costs and Prices to this effect, this Government will continue to urge the Union Government to enhance the procurement price of paddy to Rs.1,000 per quintal.

6. One and half lakh hectares of lands cultivated with paddy and other crops have been affected due to floods during the last North East Monsoon. The Central Team had inspected the flood damages. In anticipation of Central assistance, 3,60,954 affected farmers have been provided relief amounting to Rs.56.5 crores so far.

7. With a view to compensating farmers in our State for the loss on account of natural calamities like drought and floods and assisting them in insuring their crops, the scheme of Government bearing 50 percent of the insurance premium is being implemented since last year. Under this scheme which has widely been welcomed by farmers, financial support will be provided to 25 lakh farmers to insure their crops in the coming financial year. A sum of Rs.40 crores has been allocated for this purpose.

8. Tamil Nadu Agricultural Labourers Welfare Board was established in the year 2000 by the then DMK Government for the welfare of farmers and agricultural labourers. Though subsequently abolished, this Government has now revived the Board and is implementing the Agricultural Labourers and Farmers Social Security and Welfare Scheme which provides various forms of assistance to farmers, agricultural labourers and their families in the State. 1.66 crore members have been enrolled under this scheme so far. They are being provided with various forms of assistance like scholarships, marriage assistance, pension, assistance for funeral expense and compensation. A sum of Rs.152 crores has been allocated in the Budget Estimates 2008-2009 for this purpose.

9.  Under the scheme for distributing land to landless poor agricultural families free of cost by reclaiming waste land, this Government has distributed 1,78,000 acres of land free of cost to 1,51,000 poor farm families so far. Irrigation sources have been created and other supportive measures have also been provided to ensure regular cultivation of these lands. This scheme will be continued in the coming years also.

10. The System of Rice Intensification (SRI) is a newly introduced method of paddy cultivation which can increase production as well as reduce the cost of production and the requirement of water. By adopting the SRI method, our farmers will be able to produce more paddy at less cost, thereby getting a higher income. Thanks to the special efforts of this Government, SRI method is now being adopted in over 10 lakh acres of land under paddy cultivation in our State. In the coming financial year, necessary measures will be taken to extend SRI method to 18.75 lakh acres of land under cultivation of paddy.

11. National Agriculture Development Programme, launched by Union Government, is being implemented well in our State. Under this scheme, precision farming which reduces consumption of water and at the same time increases agricultural production, will be extended to all districts in the State at an estimated cost of Rs.64 crores. With a view to preserving vegetables and fruits meant for sale, cold storage facilities will be provided in 22 important ‘Uzhavar Sandhais’ (Farmers’ Shandies) by Tamil Nadu State Agriculture Marketing Board.

12. Recognising the importance of mechanisation of agricultural operations, wherever necessary, for enhancing agricultural production, this Government will assist the farmers in using machinery for agricultural activities like planting of paddy and harvest of sugarcane. A subsidy of 25% will henceforth be provided to farmers who come forward to purchase and use such machinery under the National Agriculture Development Programme. In addition, entrepreneurs manufacturing agricultural machinery and equipments will be given necessary concessions over and above what has been announced in the Industrial policy of this Government.

13. The National Food Security Mission announced by the Government of India with the objective of increasing the production of paddy and pulses has been launched in the five districts of Nagapattinam, Thiruvarur, Pudukottai, Ramanathapuram and Sivaganga in respect of paddy and in the 12 districts of Coimbatore, Cuddalore, Erode, Nagapattinam, Namakkal, Tiruvallur, Tiruvarur, Thoothukudi, Tiruvannamalai, Vellore, Villupuram and Virudhunagar in respect of pulses. The production of paddy and pulses of these districts will be increased through provision of high quality seeds, promotion of hybrids, integrated fertilizer and pest management and adoption of SRI method. With a view to encouraging farmers to cultivate pulses, Tamil Nadu Civil Supplies Corporation and Tamil Nadu Co-operative Marketing Federation will procure pulses from farmers from this year at the Minimum Support Price announced by the Union Government.

14. The National Horticultural Mission, which encourages the farmers to grow high income generating horticultural crops, has been extended to another six districts in 2007-2008, thus bringing 20 districts in the State under the coverage of this scheme. A Micro-irrigation scheme, which provides 50 percent subsidy for installing drip irrigation and sprinkler irrigation systems, is being implemented in all districts of the State in order to promote judicious use of water in the cultivation of sugarcane and horticultural crops. This scheme being implemented at a cost of Rs.169 crores during 2007-2008 will be continued in the coming year as well.

15. This Government is taking necessary measures to increase the production of palm oil by promoting the cultivation of oil palm. Agreements have been signed with oil extraction firms in Villupuram, Tirunelveli, Theni, Thoothukudi and Vellore districts. This will enable farmers to get higher income in addition to fulfilling the edible oil requirement of the State.

16. If our farmers are organised into Self Help Groups (SHGs), they will be able to derive many benefits as in the case of the successful women SHGs in the State. Considering this possibility, farmers SHGs will be formed in the coming financial year. In the first phase, 10,000 SHGs will be formed consisting of one lakh farmers who are availing crop loans from Primary Agricultural Co-operative Banks. They will act as Joint Liability Groups and will be able to easily access credit from co-operative and public sector banks. These groups will be provided with Rs.10 crores of revolving fund through co-operative banks. With this revolving fund, the members of these groups will also be able to avail loans for their emergency needs from the SHG itself. In addition, it will be helpful for the members to jointly buy agricultural inputs at a lower price and market their produce at a better price.

17. The scheme for providing free power to all farmers, which was introduced by the then DMK Government in 1990, will be continued. A subsidy of Rs.268 crores has been provided in this Budget to Tamil Nadu Electricity Board for this scheme.

18. For farmers, cattle is wealth. Under the Special Livestock Protection Scheme, 5,192 veterinary camps have been conducted and 63 lakh cattle have been treated during 2007-2008 so far. 5,500 veterinary camps benefiting 65 lakh cattle will be conducted in 2008-2009. In addition, 261 veterinary doctors and 1,317 Animal Husbandry Assistants will be appointed in the coming financial year. Our State is one of the leading producers of chicken and egg in the country. In the context of incidence of bird flu in certain parts of the country, this Government is closely monitoring and taking all measures necessary to prevent its spread to Tamil Nadu.

20. Cauvery is the lifeline of Tamil Nadu. Though the Tribunal constituted to resolve the Cauvery river water dispute has given its award, there have been some hurdles in implementing the same. This Government has been taking appropriate legal measures to remove these hurdles. In addition, in respect of issues of sharing of river waters which affect the farmers of our State like raising the water level of Mullai Periyar dam and attempt to construct check dam across Palar river, this Government will leave no stone unturned to ensure full protection of the rights of our farmers.

21. The World Bank aided IAMWARM Project is implemented at a cost of Rs.2,547 crores with the objective of benefiting 15.4 lakh acres of land through the modernisation of irrigated agriculture and restoration of water bodies in the State. In 2007-2008, this project is being implemented in 9 sub-basins. In 2008-2009, the project will be extended to another
16 sub-basins. 9.4 lakh acres of land will be benefited by the works that will be carried out in these two years. Implementation of the IAMWARM Project designed to integrate the activities of various departments aiding agricultural development, will enhance the agricultural productivity and income of farmers in addition to increasing the irrigated area. A sum of Rs.585 crores has been allocated for the IAMWARM project in 2008-2009.

22. This Government is taking all necessary steps for the rehabilitation of important channels in the main agricultural regions of the State like Cauvery delta and areas under the Parambikulam Aliyar Project. The two main canals in these areas namely the Grand Anaicut Canal and the Kalingarayan Canal, will be rehabilitated at a cost of Rs.150 crores and Rs.12 crores respectively.

23. A National Programme for interlinking of our rivers is the only solution to the problem of inter-state river water disputes and problems of inadequate water in states like Tamil Nadu. In the absence of consensus on the implementation of this project, the Hon’ble Chief Minister had requested that, as the first phase of this scheme, central assistance should be provided at least for the linking of intra-state rivers. Accepting this request, the National Development Council has resolved to provide such assistance under the Accelerated Irrigation Benefits Programme (AIBP). In anticipation of this assistance, the following river linking projects in Tamil Nadu will be taken up in 2008-2009 from the State’s own funds:

1.As the first phase of the Cauvery – Agniar – Koraiyar – Pambar – Vaigai – Gundar inter linking scheme for taking surplus flood water in Cauvery to water deficit districts, the construction of Kattalai barrage across Cauvery will be taken up at a cost of Rs.165 crores. In the next phase, works for excavating a 255 km long canal linking these rivers will be taken up based on the detailed project report under preparation.

2.The Tamirabarani – Karumeniyar – Nambiar linking project for taking the surplus water from Tamirabarani river to the water deficit areas of Tirunelveli and Thoothukudi districts will be executed at a cost of Rs.369 crores.

24. Due to overexploitation of ground water, the ground water potential in 232 of the 385 blocks in the State has considerably depleted. With a view to rectifying this situation, this Government had recently announced a scheme in the Governor’s Address for storing the unutilized surplus water of the monsoons through check dams so that it can be utilized round the year.

25. As per this announcement, a major scheme for constructing 48,500 recharge structures like check dams and percolation ponds across the rivers, rivulets and streams all over the State has been conceived. This scheme will be executed at an estimated cost of Rs.550 crores from the coming financial year through Water Resources Department, Agricultural Engineering Department, Forest Department and Tamil Nadu Water Supply and Sewerage Board with the participation of the public welfare organisations and NGOs. In the first phase, a sum of Rs.100 crores is allocated in this Budget.

26.  As stated in the 2006-2007 Budget Speech, a scheme has been formulated for flood prevention in Madurai City and this has since received approval from NABARD. These works will be carried out at a cost of Rs.12 crores in the ensuing financial year. In addition, permanent protection works against floods in Cauvery and Coleroon rivers will be carried out in Karur, Trichy, Aiyalur and Perambalur districts at a cost of Rs.211 crores.

27. Adequate financial allocation has been provided for various schemes promoting agricultural development and welfare of farmers through the Agriculture Department, Animal Husbandry, Dairying and Fisheries Department, Co-operation Department, Public Works Department and Revenue Department. With a view to informing the Hon’ble Members about the importance this Government accords to farmers and the total financial allocation made in this regard, for the first time, a separate appendix (No.22) has been added to the Appendices to the Budget memorandum placed before the House. From this, it may be seen that this Government has provided Rs.4,792 crores for the farm sector.

28. This Government is providing rice at Rs.2 per kg, the lowest in the country. Some other States in the country also have now proposed to introduce this pioneering scheme which has removed hunger of the poor and contained the rise in the price of rice in the open market. In addition, the Government is also implementing a special scheme whereby essential food commodities used daily by the common man like toor dal, urid dal palm oil and fortified atta are procured by the Government and supplied to the public at reduced prices. A sum of Rs.1,950 crores has been allocated towards food subsidy in this Budget Estimates for continuing the implementation of the aforesaid schemes.

29. The rice given under the Public Distribution System is meant for poor families. This Government is taking stringent action to prevent the despicable act of its diversion to the black market. In order to provide new Family Cards to all eligible beneficiaries without any delay, they are now being printed and issued from the respective District Collectorates. An
e-governance scheme at a cost of Rs.5 crores is being implemented with the objective of computerising the operation of the Public Distribution System throughout the State.

30. This Government is maintaining Law and Order with utmost vigil. The Police force is maintaining strict surveillance to prevent the spread of extremism to our State from the neighbouring States and through the coastal border. As is being done now, the Government will continue to take all necessary measures to ensure that no unlawful organisation of any kind rears its head in the State.

31. The Third Police Commission, constituted by this Government on the lines of the previous two Police Commissions constituted by this Government in the past to usher in police reforms and promote the welfare of policemen, has submitted its report. Government will study all recommendations in the report and necessary measures will be taken to make the Police department function even better. Currently, schemes to the tune of Rs.68 crores are being implemented under the Police Modernisation Fund. In the coming year, with a view to aiding the transmission of urgent information regarding crimes and law and order situations then and there, all police stations in the State will be provided with broadband internet connectivity. The total allocation for the Police department, which was Rs.1,346 crores in 2005-2006, has been increased to Rs.2,427 crores in 2008-2009.

Road Safety

32. Recurrence of road accidents and loss of many lives in these accidents cause great anguish. With a view to averting accidents and minimising the loss of lives, the following steps will be taken in the coming financial year:

· In view of a large number of accidents occurring on the road intersections in the National Highways of the State, such intersections will be identified and provided with speed breakers, warning boards and lighting facilities. There works will be taken up through the Highways Department and the Local Bodies.

· Non-observance of traffic rules is a major cause of accidents and hence drivers will be given training in this regard.

· Drivers of State Transport Undertakings who have driven without any accident will be given medals and cash prizes. The details in this regard will be announced during the demand for grants.

· The contribution of the State Government to the Road Safety Fund will be increased from Rs.6 crores to Rs.10 crores and will be utilized for implementing accident prevention schemes.

· Emergency Trauma Care Centres will be established at Kilpauk Medical College at a cost of Rs.8 crores, Vellore Medical College at a cost of Rs.7 crores and Krishnagiri District Headquarters Hospital at a cost of Rs.3 crores with assistance of the Union Government.

Courts

33. This Government accords priority for providing adequate buildings and residential quarters for the judiciary. After this Government assumed charge, building works to the tune of Rs.102 crores have been sanctioned and are being executed. In addition, new works at a estimated cost of Rs.100 crores will be taken up in the coming financial year. A total sum of Rs.316 crores has been allocated for the Judiciary in this Budget.

New Legislative Assembly Complex

34. Marking the occasion of the Hon’ble Chief Minister completing 50 years as a legislator, it was announced that a new Legislative Assembly and Secretariat Complex will be constructed in the Government Estate at Chennai. An Architectural firm has been selected to design this building to be constructed at an estimated cost of Rs.200 crores, in our traditional Dravidian architectural style. Construction will commence in the coming financial year and a sum of Rs.75 crores is provided in this Budget for this purpose.

Sethusamudram Project

35. The feasibility of the Sethusamudram Project, the long standing dream of the Tamil people, has long since been established through surveys and considered desirable by experts. This project has the potential to contribute to the further strengthening and development of the State and the Country. This Government urges the Union Government to remove the hurdles created on political grounds with ulterior motives and complete the project expeditiously.

School Education

36. After this Government assumed charge, 45,987 teachers have been brought into regular time scale of pay from consolidated pay. In addition, 21,574 vacant posts of teachers have been filled up and 7,979 new posts of teachers have been created and are being filled up. Activity Based Learning, designed to help students understand and learn their lessons easily, has been introduced in all primary and middle schools in the State. In the coming academic year, 100 middle schools will be upgraded to high schools and 100 high schools will be upgraded to higher secondary schools.

37. This Government has undertaken works to improve the infrastructure in all schools in Tamil Nadu. Necessary class rooms for primary and middle schools are being constructed under various schemes. Buildings for 343 Government high schools and higher secondary schools are being constructed with NABARD assistance. Further, schools all over the State are being provided with benches, desks and chairs at a cost of Rs.69 crores. Buildings required for 450 Government high schools and higher secondary schools will be constructed at an estimated cost of Rs.312 crores in the coming financial year with NABARD assistance. A provision of Rs.150 crores has been made for the construction of school buildings in the coming financial year.

38. Tamil Nadu is the one of the best performing states in the country in the implementation of Sarva Siksha Abhiyan (SSA). This scheme will be implemented at a cost of about Rs.800 crores in the ensuing year. An allocation of Rs.280 crores has been made as the State Share of this scheme for the coming financial year. Having ensured universal primary education, this Government will now target to achieve universal secondary education during the Eleventh Five Year Plan period by effectively implementing the new Scheme of Access to and Improvement of Quality of Education at Secondary Stage (SUCCESS), introduced by the Government of India for this purpose. A sum of Rs.200 crores has been allocated in this Budget as the State’s share for this scheme.

39. In the coming financial year, a sum of Rs.54 crores has been allocated for scheme of providing free text books to students and a sum of Rs.58 crores has been allocated for the scheme of providing free uniforms to students. A sum of Rs.112 crores has been provided for the scheme of providing free bi-cycles to students studying in XI^th Standard. In addition to these schemes, a sum of Rs.300 crores has been provided as grants to State Transport Undertakings for implementing the scheme of providing free or concessional bus passes to students. Overall, the total allocation for the School Education Department which was Rs.4,110 crores in 2005-2006 has increased to Rs.7,852 crores in this Budget.

40. With a view to improving the mathematical skills/numerical ability of students, starting from the coming academic year, mathematics laboratories will be established in 100 schools in the State. 100 higher secondary schools will be given laboratory equipments and 100 high schools will be provided with science equipments. Computer aided language laboratories will be established in 500 government higher secondary schools. In addition to these, library facilities will be improved in 100 high schools and 100 higher secondary schools.

41. This Government is also taking necessary steps for the improvement of schools functioning under the control of rural local bodies. Repair works and construction of toilets at a cost of Rs.103 crores have been taken up in 11,076 such schools. In the financial year 2008-2009 also, improvements works will be carried out in 11,000 Panchayat Union Schools at a cost of Rs.100 crores.

42. It was only during the tenure of the previous DMK Government that computer education was introduced in Government higher secondary schools in 1999-2000. 1,880 Government higher secondary schools and 1,525 Government high schools in the State have been provided with computers in the last two years after this Government assumed charge in 2006. In the coming financial year, computers will be provided to the remaining 100 Government higher secondary schools and 606 Government high schools. In addition, in the first phase of the scheme for providing computers to middle schools, 2,200 out of the 6,650 middle schools belonging to the Government and local bodies will be provided computers. A sum of Rs.71 crores has been allocated in this Budget for this purpose. In the coming financial year, a provision of Rs.2.37 crores has been made for providing computers as prizes to 1,000 top ranking Tamil medium students in the tenth standard public examinations.

43. This Government is determined to mould a better society through a uniform education system which will endeavour to provide quality education to all students studying in schools under various Boards under its management through a uniformly designed curriculum, syllabus, text books, pedagogically correct examination system, student centric teaching through good teachers and teaching-learning experience in class rooms. Works on preparation of the curriculum, syllabus and text books for this purpose will be taken up in the coming academic year. The uniform education system will make Tamil Nadu a pioneer in this respect in the entire Indian sub-continent and will be
a harbinger of a student community of very high quality thereby creating a Tamil Society par excellence.

44. Last year, this Government had abolished the public examination fee for the Tamil medium students in government and government aided schools which used to be Rs.115 for the tenth standard and up to Rs.225 for the twelfth standard. Currently, students who are studying in classes from sixth standard to twelfth standard in these schools have to pay Special Fees ranging from Rs.33 to Rs.103. With a view to providing totally free education in government and government aided schools, this Special Fees will also be abolished from the coming academic year. As a result, over 50 lakh students studying in these schools will benefit. Also, about 21,000 students studying in the Government Industrial Training Institutes will also be exempted from the payment of Rs.1,200 per annum as Special Fees.

Libraries

45. With a view to making rare and costly books accessible to the general public and students of modest means, this Government had announced in the last Budget speech that a modern library of international standard will be established in Chennai at an estimated cost of Rs.100 crores. Having identified the land and finalised the design for this library, works in this regard will commence in the coming financial year. With a view to promoting the welfare of publishers, book sellers and persons working in this industry, Government will establish a separate welfare board for them.

Higher Education

46. After this Government assumed charge, it has facilitated more number of students from rural and poor families to have access to technical education by abolishing the Common Entrance Test for professional courses which was an unnecessary burden on students. In addition to granting exemption from payment of tuition fees to all students studying under-graduate courses in Government and Government Aided Arts and Science Colleges, the Government has also converted all self financing courses in Government Colleges started during the previous years into regular courses.

47. This Government has introduced shift system in Government Arts and Science colleges in the State in the last two years. As announced in the last year’s Budget speech, the construction of 500 additional class rooms at a cost of Rs.25 crores is under progress. Having regard to the number of students studying Government Arts and Science Colleges in our State and their space requirements, 500 more class rooms will be constructed at an estimated cost of Rs.30 crores in the coming financial year. Compound walls will be constructed for all women’s colleges and toilet facilities will be created in all Government Colleges at an estimated cost of Rs.8.5 crores.

48. Having regard to the fact that Community Colleges are playing a very important role in imparting employment-oriented skills to poor drop outs who could not continue their education, Government will extend its support to them. From the coming academic year onwards, these community colleges will be given student grant at the rate of Rs.1,000 per student through Tamil Nadu Open University. A sum of Rupees One crore is allocated in the Budget for this purpose. 10,000 students will benefit from this scheme.

49. Three technical universities had been established in Trichy, Coimbatore and Tirunelveli for the purpose of extending the reach of technical education. With a view to enabling more students from poor families to get engineering education at a low cost, new engineering colleges will be established through Anna Universities at Tindivanam, Villupuram, Panruti, Nagapattinam and Ramanathapuram. In addition, the infrastructure in existing engineering colleges will be upgraded and the seats available in them will be augmented.