'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.
UNI