'Populist' TN budget brings tax concessions
Chennai, Mar 23: The DMK Government in Tamil Nadu today presented a ''please all'' tax free budget, providing succour to the common people with huge tax concessions.
Presenting a Rs 101.38 crore deficit budget for the year 2007-08, Finance Minister K Anbazhagan, besides refraining from levying any fresh taxes, abolished Value Added Tax on more than 20 items and slashed VAT from 12.5 per cent to four per cent on 28 items of mass consumption.
The Finance Minister, presenting a full-fledged budget after the DMK came to power in May last, projected revenue receipts at an estimated Rs 44,532.28 crore and the total revenue expenditure at Rs 44,633.66 crore, leaving a revenue deficit of Rs 101.38 crore.
The DMK Government had presented a tax-free revised budget for the year 2006-07 in July last, when he announced the introduction of VAT system, which came into force in January this year.
Mr Anbazhagan said the total government expenditure, including loans and advances in 2007-08 was projected at Rs 7,699.18 crore.
This coupled with the revenue deficit, would result in a total fiscal deficit of Rs 7,800.56 crore.
Taking into account the net public account, the overall deficit would be Rs 3.75 crore and this deficit will be made good by economy in expenditure and better tax administration, Mr Anbazhagan said.
He said the projected fiscal deficit would constitute only 2.84 per cent of the Gross State Domestic Product and this was well within the limit of three per cent fixed Fiscal Responsibility Act, 2003.
It was virtually a ''give away budget'' as Mr Anbazhagan announced concessions for all sections of the society, as if the ruling DMK, which relied on the outside support of its allies, is readying for a mid-term poll.