Welfare of Sanitary Workers

1. 108.        Having regard to the fact that special concessions are required for the development of Arundhatiars who are most backward among the Adi-dravidars, on the recommendation of an one man commission headed by Justice M.S.Janarthanam constituted to examine the need for separate reservation, this Government has decided to implement 3 percent reservation for Arundhatiars within the overall reservation for Adi-dravidars. A Bill for this purpose will be introduced during this Budget session itself.
2. 109.        In addition to providing welfare benefits to those engaged in cleaning and sanitary work by establishing a separate welfare board for them, this Government is implementing a rehabilitation scheme at a cost of Rs.22 crores for helping those engaged in manual scavenging earlier, to take up  alternative employment.  In order to eliminate the need for these workers  to work inside sewer lines, desilting machines at a cost of Rs.6.3 crores will be purchased for Chennai Corporation and 9 other Municipalities.
3. 110.        Schemes are being implemented for the development of Adi-dravidar and Tribal communities through separate allocations in the divisible plan schemes of State Government under Scheduled Caste Sub-plan. I am happy to announce that the allocation under Scheduled Caste Sub-plan has been increased to Rs.2,615 crores in the financial year 2009-2010 as against that of Rs.567 crores in the year 2005-2006.

Welfare of Backward Classes, Most Backward classes and Denotified Communities

1. 111.        This Government has enhanced ceiling on the annual income of parents from Rs.50,000 to Rs.1 lakh, for enabling the students of  Backward, Most backward and Denotified Communities to avail scholarships. A sum of Rs.82 crores has been allocated in this Budget for the purpose of scholarship to these students. Moreover, last year this Government has increased the monthly food allowance for School students and college students staying in the hostels to Rs.450 and Rs.550 respectively. 66,652 students have benefited on account of this measure. With a view to helping these students belonging to poor families, own buildings will be constructed for 25 hostels which are functioning in private buildings at a cost of Rs.12.5 crores.
2. 112.        This Government is implementing the scheme for imparting skill development training to youth of Backward, Most backward and Denotified communities to enable them to get proper employment. Under this scheme, 10,000 more youth will be trained in the coming financial year. A sum of Rs.10 crores is allocated for this purpose in this Budget. Overall, a sum of Rs.435 crores has been allocated to Backward, Most backward and denotified communities department in ensuing financial year.

Minorities Welfare

1. 113.        In addition to providing 3.5 percentage reservation in employment to the Muslim minorities who are socio-economically and educationally backward, in order to pay special attention to minorities development, this Government has created a separate Directorate for Minorities. Training has been imparted to youth numbering 8,000 under the scheme of skill upgradation training that enables youth from minority communities get employment. In the coming financial year, loans to the tune of Rs.30 crores will be disbursed to 10,000 persons belonging to minority communities through Tamil Nadu Minorities Economic Development Corporation.  In addition, a separate welfare board for Ulemas and other employees will be established for the welfare of Ulemas and other employees serving in mosques, darghas and madarasas in the State.

Welfare of Children

1. 114.        This Government is providing eggs and banana for those who do not eat eggs, thrice a week for 73 lakh children in Tamil Nadu who take noon meal under the nutritious meal scheme. With a view to protecting employees cooking food and the children from smoke, under the scheme of modernization of kitchens, gas stove and pressure cooker are being provided to 1,850 nutritious meal centres and 5,940 child centres at a cost of Rs.805 lakhs, during the past three years. In the coming financial year, these items will be provided to  350  nutritious meal centres and 2,000 child centres at a cost of Rs.224 lakhs. Overall, a sum of Rs.830 crores has been allocated for Noon meal scheme.
2. 115.        With a view to enabling more number of beneficiaries avail benefit under the Integrated Child Development Scheme (ICDS) which aims at providing nutritious food to children, pregnant women and adolescent girls, this Government has established 1,539 new child centres and 3,168 mini-centres. 73 lakh children are being benefited under the scheme for providing eggs to the children who take food in schools and child centres. A sum of Rs.176 crores is allocated in this Budget for this scheme.

Tamil Development

1. 116.        The success of the tireless efforts of the Hon’ble Chief Minister Kalaignar in ensuring students studying in all schools in Tamil Nadu learn Tamil language, making the Union Government declare Tamil language as a classical language and establishing Central Institute for research in Classical Tamil at Chennai, is a matter of satisfaction and happiness to all of us.  This Government will leave no stone unturned for making Tamil one of the official languages of the Union Government and a language of transaction in all proceedings of the Madras High Court.
2. 117.        With a view to ensuring that the views and thoughts of great Tamil Savants who dedicated their lives to the Tamil language, benefits not only the present but future generations also, the Tamil Nadu Government is implementing the scheme of nationalization of books of Tamil scholars.  The books of 95 Tamil scholars have been nationalized by the State Government so far.  Out of these, the works of 87 scholars have been nationalized by the DMK Government.  After assuming charge by this Government in 2006 the works of 65 Tamil scholars including that of Parithimar Kalaignar, Pulavar Kuzhanthai, Muthamizh Kavalar K.A.P.Viswantham, Ilakkuvanar, Prof.Vellaivaranar, Dr.R.P.Sethupillai and Va. Suba. Manickam have been nationalised and solatium of Rs.4.86 crores have been given to their legal heirs.  In continuation of this, this year books of 28 Tamil scholars namely Kuzhanthi Kavignar Ala.Valliappa, Kaviarasu Kannadhasan, Prof.Viayapuri Pillai, Pandithamani M.Kathiresan Chettiar, M.Raghavaiyangar, Pammal Sambandanar, A.Chidambaranathan Chettiar, M.S.Poornalingam Pillai, T.M.Baskara Thondaiman, Palur Kannappa Mudaliar, Raya.Chockalinganar, Dr.M.Varadharajanar, Dr.S.Akathiyalingam, Pavalar N.R.Natchiappan, Puliyur Kesikan, Writer Chandilyan, Writer V.M.Kothainayaki, Chinna Annamalai, Poovai S.Arumugam, N.V.Kalaimani, Kavingnar Murugusundaram, Pulavar T.Kovendan, Writer Sundara Ramasamy, Tirukural Mani, A.K.Navaneetha Krishnan, Lakshmi, Vaduvoor Duriasamy Iyengar, Jamathagni and J.R.Rangaraju will be nationalised and solatium will be given to their legal heirs having regard to the number of books written by them, their social impact and their literary value.

Tourism

1. 118.        Several important tourist spots in Tamil Nadu are being improved during the last three years at a cost of Rs.67 crores. Improvement works have been undertaken in Madurai, Kanyakumari, Thanjavur, Tiruvarangam, Yelagiri, Rameswaram, Sapthavidangal, The Nilgiris, Kodaikanal, Kovai Kutralam, Mudumalai, Anaimalai, Chettinadu, Puliyancholai and Vellore Fort.  Besides, works at a cost of Rs.29 crores are being undertaken in Tharangampadi, Pazhaverkadu, Kolli hills, Mamallapuram, Courtallam, Thiruchendur and Hogenakkal. In the coming financial year tourist spots like, Valparai, Grand Anicut, Yercaud, Tiruvanaikaval, Srivilliputhur, Sikkal, Velankanni and Nagore will be improved. In addition, a provision of Rs.10 crores is allocated in this Budget for improving the roads leading to important tourist centres.

Forest and Environment

1. 119.        With a view to improving the forest area in Tamil Nadu, the Tamil Nadu Afforestation Programme is being implemented at a cost of Rs.567 crores with the financial assistance from Japan Bank for International Co-operation. Under this project, afforestation programmes at a cost of Rs.63 crores will be taken up in the coming financial year.  Under this, 450 checkdams and 150 recharge pools will be formed.
2. 120.        The scheme for growing trees in private lands, implemented by this Government during the last two years has received good response from the farmers of Tamil Nadu. With a view to increasing the forest cover in the State, one crore saplings will be planted in the coming year under this scheme. A sum of Rs.10 crores is allocated in this Budget for this purpose.

Hindu Religious and Charitable Endowments

1. 121.        By upholding the principle of equality that qualified persons from all castes amongst Hindus can be Archakas, this Government has realized the dream of Thanthai Periyar. Six Archaka Training centres have been started and 207 students belonging to all castes have completed their one year training. This Government will take necessary steps to enable them work as Archakas in temples.

Sports and Youth Welfare

1. 122.        All village panchayats have been provided with sports materials at a cost of Rs.5 crores, during the past two years. With a view to enabling talented sports persons to get proper training, a new synthetic atheletic track will be set up at Tirunelveli at a cost of Rs.300 lakhs. Moreover, a swimming pool of international standard will be constructed in Coimbatore district at a cost of Rs.175 lakhs.

Welfare of Government Employees & Pensioners

1. 123.        Soon after assuming charge, in addition to filling up vacant posts in many departments, this Government has restored many benefits of Government employees that were taken away during the previous regime. By increasing the quantum of medical assistance for Government employees a new medical insurance scheme has been implemented with a view to benefiting not only the Government employees but also those working in the public sector undertakings, statutory boards, universities and local bodies.  While only about 2,000 Government employees received medical assistance worth Rs.18 crores on an average annually under the previous medical assistance scheme, 19,311 employees have received medical treatment worth Rs.70 crores in first eight months alone under the new medical insurance scheme implemented by this Government. A provision of Rs.66 crores has been made for this scheme in this Budget.
2. 124.        An official level committee, appointed by this Government to examine the modalities of implementing 6th pay commission recommendations for state Government employees, has met various employee associations, received their representations and is currently examining them. In the meantime, this Government has ordered payment of interim arrears to the tune of Rs.4,247 crores to Government employees, the scale and magnitude of which has no parallel in any other state.  On receipt of the final report of the committee, the Government will examine and issue necessary orders to implement the revised pay scales at the earliest.
3. 125.        Under the scheme for medical treatment to pensioners, in addition to providing Rs.24 crores in the past three years to make up the shortfall in view of the contribution received from them being insufficient, the ceiling on medical reimbursement has been increased form Rs.50,000 to Rs. one lakh by this Government. Accepting the long standing demand for inclusion of the spouse of the pensioner also under this scheme for the purpose of providing medical reimbursement, medical expenses incurred by them also will be reimbursed.

Annual Plan

1. 126.        The Eleventh Five Year Plan is being implemented with an outlay of  Rs.85,344 crores from the year 2007-2008. Plan schemes have been implemented at an outlay of Rs.14,000 crores in the first year 2007-2008 and are being implemented at an outlay of Rs.16,000 crores during the year 2008-2009. This outlay has been further increased and in the coming financial year 2009-2010, plan schemes are proposed to be implemented at an outlay of Rs.17,500 crores.

Taxes

1. 127.        The electricity tariff and bus fares have not been increased in the last three years.  Moreover, in the last three Budgets, this Government has only announced reduction and exemption of Value Added Tax on various commodities.  Similarly, for everyone’s benefit, it is proposed to announce tax reductions and exemptions in this Budget as well.  Having regard to the requests made by the representatives of the trading and manufacturing community in the pre-budget meeting conducted by the Government on 4.2.2009 as is the custom with this Government, the following tax concessions are being announced for the benefit of consumers, traders and manufacturers in respect of Value Added Tax.

• Last year, the important cooking ingredients such as mustard, aniseed and fenugreek were exempt from levy of tax, for dealers having total turnover up to a limit.    Now, pepper and cumin seed which are in the same category will also be granted exemption with the same condition.

• Sale of pulses, grams, peas and peas dhal are conditionally exempt from levy of tax.   However, when these goods are purchased for use in the production of goods like flour, purchase tax is levied on these goods.   To avoid this, pulses, grams, peas and peas dhal will be exempt from levy of purchase tax with effect from 1.1.2007.   

• At present 12.5% tax is levied on hand-made steel trunk box.   These goods will be exempt from levy of tax.  

• Handmade tin containers will be exempt from levy of tax.

• The tax levied at 12.5% on branded ghee will be reduced to 4%.  

• The tax levied at 12.5% on branded pickles will be reduced to 4%.  

• The tax levied at 12.5% on hand-made iron safe will be reduced to 4%.  

• The tax levied at 12.5% on dried grapes (Kismis) will be reduced to 4%.  

• The tax levied at 12.5% on bleach liquid will be reduced to 4%.  

• The tax levied at 12.5% on paper pin, safety pin, gem clip, identity card clip, examination board clip, rubber band and stapler pin will be reduced to 4%.  

• The tax levied at 12.5% on I.T. products, namely, i-pod, MP3 and MP4 players will be reduced to 4%.  

• The tax levied at 2% on the sale of sago and starch through Salem SAGOSERVE will be reduced to 1%.  

• To enable brick manufacturers to pay tax in a simple manner, tax will be levied on the basis of number of kilns, at the option of the dealers.

• Manufacturers and traders whose turnover was below the threshold limit of Rs.5 lakhs and 10 lakhs, respectively, during the period from 1.1.2007 to 31.3.2007 have represented that they also may be given the benefits under VAT Act.   Accepting their request, the assessment for the above period will be made under Tamil Nadu Value Added Tax Act  (TNVAT Act) treating the total turnover for the year 2006-2007, including the turnover under TNGST Act, from 1.4.2006 to 31.12.2006 as annual total turnover under TNVAT Act.   This assessment will be made only on dealers who have collected VAT during the above period.  Due to this, about 10,000 small manufacturers and traders will be benefited.

• Necessary amendments will be brought relating to the provisions of Tamil Nadu Value Added Tax Act, 2006 and its rules in order to further simplify and fine-tune the procedures.  The details of such amendments will be announced when the Demand for Grant of the Commercial Taxes Department is taken up.

The announcement of tax exemptions and reductions made now, will take effect from 1.4.2009.  In the interest of the public, manufacturers and traders this Government announces these concessions even though these concessions will entail a loss of revenue of Rs.100 crores. 

1. 128.        This Government had reduced the fee charged for outdoor shooting for the benefit of the film industry.  In addition, with a view to rejuvenating the film industry by attracting more people to the Cinema halls, this Government had fully exempted the entertainment tax levied on Tamil films named in Tamil.  However, in spite of providing such concessions to this industry, in view of the fact that  these benefits have not been passed on to the general public, this Government will constitute a committee to review these concessions.

Overall Financial Position

1. 129.        Hon’ble Speaker Sir, I will now present the details on the fiscal projections for the Budget Estimates for the year 2009-2010.  The total revenue receipts of the Government for 2009-2010 are estimated at Rs.58,270.93 crores and the total revenue expenditure is estimated at Rs.59,295.28 crores.  In addition, the total capital expenditure of the Government including net of loans and advances is projected at Rs.10,799.30 crores in the coming financial year.
2. 130.        Under the circumstances stated above, revenue deficit of the Government of Tamil Nadu is estimated to be Rs.1,024.34 crores and the total fiscal deficit is estimated to be Rs.11,823.64 crores in the coming financial year.  This situation of revenue deficit has arisen on account of declining trend in the growth of revenue receipts of the Government due to slowdown in country’s economy, likely increase in salaries as per sixth pay commission recommendations and higher allocation for various welfare schemes.  In spite of this, realising the fact that increasing the development expenditure of Government is the only way to protect the people belonging to the lowest strata of the society from getting affected due to the adverse impact of the difficult economic conditions prevailing in the country now and to continue to take the State on the path of development, this Government has ensured adequate allocation of funds for various schemes.  The Hon’ble members may note that, even in this situation, the total fiscal deficit of the State is within the three percent of the Gross State Domestic Produce, as stipulated in the Tamil Nadu Fiscal Responsibility Act, 2003.  Taking into account the net Public Account, the overall deficit will be Rs.6.36  crores.  This deficit will be made good by economy in expenditure and better tax administration.
3. 131.        A plan of action for future has been indicated in the Medium Term Fiscal Plan given as annexure to the Budget Speech.  I request that this may be taken as read as part of the Budget Speech.  This Government will effectively adhere to the fiscal targets indicated in the Medium Term Fiscal Plan.
4. 132.        Dravida Munnetra Kazhagam - which was founded by Perarignar Anna, strengthened and has been in sustained and continuous existence since then – has assumed office on the strength of the massive mandate given by the people of this State and has been formulating and implementing various schemes to bring prosperity and benefits, resulting in development of all sections of the society, especially the common man.    The achievements of this Government during the last three years after coming to power for the fifth time, bearing testimony to this Government’s endeavour to protect and nurture the treasures of language, art, tradition and culture of the ancient Tamil race, are abundant.
5. 133.        If one can recall the following list of accomplishments, it can be realized that, the thoughts and deeds of our Chief Minister Kalaignar constantly revolve around the downtrodden alone. Here are a few examples from the list of achievements:-
1. ·       20 Kilograms of rice per month to 1.86 crore families at one rupee a kilogram.
2. ·       Rs.80 crores worth rice, dhal, jaggery etc., to 1.84 crore families as Pongal gift for celebrating Tamil festival of Pongal which has been declared as Tamil New Year.
3. ·       Waiver to the tune of Rs.7,000 crores of co-operative loan for 22,40,739 farm families.
4. ·       Opening of Uzhavar Sandhais numbering 117 with a facelift benefiting farmers and consumers.
5. ·       Financial assistance of Rs.104,97,44,000 to 3,74,357 families of unorganised labourers.
6. ·       Free colour television sets to 56,26,557 poor families at a cost of Rs.1,374,54,30,000 so far.
7. ·       Free gas stoves with connections to 11 lakh families at a cost of Rs.220 crores.
8. ·       2,10,289 acres of land given free of cost to 1,75,159 poor landless agricultural labourers .
9. ·       Free house site pattas to 6,54,308 poor families.
10. ·       Eggs and bananas thrice a week to 73 lakh children and students.
11. ·       Waiver of special fees to over 50 lakh students studying in Tamil medium Government and aided schools and waiver of Government examination fees to students of 10th and 12th standards.
12. ·       Free bus passes to 24.82 lakh school children and concessional bus passes to 2.99 lakh college students.
13. ·       Rs.355.89 crores as marriage assistance for 2,14,189 poor girls.
14. ·       Rs.487.56 crores as financial assistance to 10,78,612 poor pregnant women.
15. ·       Free electricity to 1,42,369 handloom weavers, 1,05,182 power loom weavers and 2,39,511 farmers who obtained power connection under the self financing scheme.
16. ·       Assistance of Rs.176,15,30,604 to 3,53,488 educated unemployed youth.
17. ·       Employment to 3 lakh youth in Government and Government organizations.
18. ·       Financial assistance to 15,29,582 old aged persons and destitute widows at the rate of Rs.400 per month.
19. ·       Pay scales and pension to 2,12,981 noon meal workers.
1. 134.        During this three year period of administration by Kalaignar, who gave the saying that, “Don’t forbid temple, forbid temple from turning into a tent of tyrants” to Tamil Nadu, 3072 temples have been renovated, repaired and restored by conducting Kudamuzhukku at a cost of Rs.65 crores. 2,790 works such as renovating old temple chariots, crafting new golden temple chariots and providing necessary facilities for the devotees have been carried out at a cost of Rs.257 crores. 46 ancient temples of historical importance are being renovated at an estimated cost of Rs.10 crores. Also justice has been done with the world famous Natarajar temple at Chidambaram coming into Government’s fold. 
2. 135.        With a view to  reminding the multiple facets of the ancient Tamil culture which came into existence along with the Moon, great Sun, Sky, Stars and the deep Sea and ensuring that the present and future generations remember and praise the scholars, political leaders, freedom fighters and literary figures right from Sangam poet Kaniyan Poongundranar, who before 2000 years had got measure of the world through his thoughts and reaching the pinnacle of humanity, declared that ‘Every place is our place and Everyone is our relative’ to Kumaran, the protector of the tri-colour – everlasting monuments have been established by this Government.  Under this rule, the  statues of  Thyagi Arya alias Bashyam, Thyagi Sangaralinganar, Thyagi Shenbagaraman, Veeran Azhagumuthukon, S.S.Ramasamy Padayachiar, Thyagi Kakkan, Nadigar Thilagam Sivaji Ganesan – monuments and commemorative halls for Poolithevan, Kattabomman, Sundaralingam, Viswanatha Das, Jeevanandham, Thillaiyadi Valliyammai, Mahakavi Bharathiyar, Annal Ambedkar, Mootharignar Rajaji, Namakkal Kavignar Ramalinganar, Udumalaiyar, Pattukkottaiyar – memorials for Maruthu Pandiyar, Pasumpon Thevar Thirumaganar, Thanthai Periyar, Perarignar Anna, Perunthalaivar Kamarajar, Periyavar Bakthavatsalam, Quid-e-Milleth, Makkal Thilagam M.G.R. (first memorial) – Omanthoorar Government Estate, Sir Pitti Thiyagarayar Auditorium and Kalaivanar Arangam – seven storeyed Silappathikaram memorial at Poompuhar, Valluvar Kottam at Chennai and the sky-high statue of the famous Saint Thiruvalluvar at Kanyakumari surrounded by seas -  have been established, thus ensuring that Tamil Nadu will never forget them.
3. 136.        After Hon’ble Chief Minister Kalaignar gave his consent to the demand for installing the statue of the Kannada poet Sarvajna at Chennai, touched by this magnanimity, the Hon’ble Chief Minister of Karnataka has agreed to provide necessary cooperation to install the statue of Saint Thiruvalluvar at Bengaluru.   Pursuant to this, I wish to inform with delight that the statues  of Saint Thiruvalluvar and Poet Sarvajna will be installed shortly, thus fulfilling the dreams of Kannadigas living in Tamil Nadu and Tamils living in Karnataka.  It is also the wish and objective of this Government that such cordial relationship between states should grow and prosper.
4. 137.        This Government which is working each and every day, with a view to realizing the dream of Puratchi Kavignar Bharathidasan –

“Crowds of Tamils like floods

crowds of sterling heroes

Though several forms

Their heart beats as one.

Malice cannot approach them

When’ll come the day

when I watch in ecstasy

At the world’s bewilderment

on watching this scene?”

has been carrying out great work with the support of the United Progressive Alliance Government and with the hope that the support of Tamil people will be always be available for achieving the prosperity of this state and every household, glory of the race and language, sustained religious harmony by adoring secularism and fulfillment of the unique thoughts of Anna and the exemplary endeavours of our Kalaignar.

1. 138.        I place the Budget for the year 2009-2010 before this house, conveying my heartfelt thanks to the Principal Secretary, Finance Thiru K. Gnanadesikan, IAS and other officials of all Government departments including Finance department who have worked tirelessly and co-operated to prepare this Budget.

Vanakkam

K. Anbazhagan

Minister for Finance

Chennai,

17th Februrary 2009

Masi-5,

Thiruvalluvar Aandu 2040

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