A news report in the year 2002, in the business daily ‘The Financial Express’, a publication of the New Indian Express group, which is one among those spearheading a campaign of calumny against the DMK government and Kalaignar in particular and for the return of Jayalalitha regime in Tamil Nadu, reads as: “On August 27 (2002), Tamil Nadu witnessed an unprecedented mass protest fast throughout the state. Led by major trade unions, the agitators included people from all walks of life - lawyers, bank and insurance staff, businessmen, traders, government employees, college and primary school teachers, students, weavers, farmers, women’s associations and NGOs. Each group was protesting one or more orders or actions initiated by the state government to raise resources or cut down expenditure or subsidies ‘to save the exchequer from going bankrupt’. In 2001, the Jayalalitha regime…. proposed to widen the tax base by bringing more commodities under the tax net. This piqued traders in the state. The decision to stop the free dhoti/saree scheme was opposed by the weavers. The government wants to cut down expenditure on education by making the colleges constituents of universities. This has set both teachers and students on a war-path. The woes of primary school teachers stem from the government’s plan to stop fresh recruitment. Lawyers are up in arms against the move to hike court fees. Trade unions are protesting against the ban on strikes in essential services and freeze on salaries and ban on recruitment. Drought and water shortage are adding to the government’s woes. Already the crop loss is put at Rs 1,200 crore and over 80,000 farm labourers are out of work.”
All these were part of ADMK regime’s move to bring about ‘reforms and restructuring’ to effect ‘fiscal descipline’ initiated by Jayalalitha. It did not include drastic measures affecting people as a whole like introduction of three types of ration cards including H cards, whose holders were denied supply of PDS rice, sugar, kerosene etc., Food subsidy was cut from Rs.1,200 crore in 2002-03 budget to Rs.600 crore in 2003-04 and price of ration rice increased to Rs.6 per kg.
The compounded anger of all sections of people resulted in the total rout of the ADMK in the Lok Sabha elections in 2004 and the overthrow of Jayalalitha regime in 2006 Assembly polls. Jayalalitha, her cohorts and loyalist like this newspaper group may feign ‘selective amnesia’ but the people of the State continue turning lie of the statement, ‘People’s memory is short’ through their verdicts election after election and bypoll.
Diametrically in contrast to Jayalalitha’s attitude, the compassionate leader Kalaignar, while launching the Kalaignar Housing Scheme for hut-free Tamil Nadu in Tiruchi on March 5, dismissed doubts whether the government would be able to raise the funds required for the massive project and said, “What is required is not ‘panam’ (money) but ‘manam’ (mind). He did so in a fortnight on March 19 in the Budget for the year 2010-11 by providing Rs.1,800 crore for the first phase of the scheme.
Like all the previous budgets of the DMK government, the allocations for all the schemes in social sector and for education, health, infrastructure and for deprived sections like Adi Dravidars, tribals and minorities were stepped up even while effecting no new taxes but exempting or reducing for many commodities. It was an attempt to balance the DMK government’s commitment to social welfare with the need to maintain fiscal prudence keeping the fiscal deficit within the fiscal responsibility norms.
Like all the previous budgets of the DMK government, the allocations for all the schemes in social sector and for education, health, infrastructure and for deprived sections like Adi Dravidars, tribals and minorities were stepped up even while effecting no new taxes but exempting or reducing for many commodities. It was an attempt to balance the DMK government’s commitment to social welfare with the need to maintain fiscal prudence keeping the fiscal deficit within the fiscal responsibility norms.
The government will disburse crop loans worth Rs.2,500 crore this year, allot an amount Rs.1,800 crore for the ambitious plan to build three lakh concrete houses for slum dwellers, spend Rs.3,750 crore towards food subsidy. That apart there are ongoing schemes like free power for farmers (subsidy of Rs.295 crore) and distribution of 44.6 lakh free colour television sets (Rs.500 crore). Welfare measures include a pioneering initiative to set up a department to coordinate schemes for the differently abled under the stewardship of the Chief Minister himself. Education and Health have come in for equal emphasis with provisions made to set up more hospitals, schools and colleges. A new Anna University for Technology based in Madurai, a medical college for Tiruvannamalai and an Institute of Medical Health in Theni are in the offing. A fresh of its kind subsidy has also been provided for poor students to pursue undergraduate professional courses. The government has made post-graduate courses in government colleges totally free. Undergraduate courses are already free in these colleges. The decision to distribute English-English-Tamil dictionaries for 10 lakh students in class IX would go a long way in improving the language skills of the student community.
Other notable commitments and allocations are road expansions and flood mitigation projects in the paddy belt, payment of Rs.2,000 per tonne for sugarcane farmers, inclusive of transport charges and recovery based incentives and additional price of Rs.100 per tonne for current crushing season to make it Rs.1,650 against Rs.1,550 advised earlier.
As in the last four years, the budget has stepped up welfare provisions and outlays for capital expenditure, especially for rural and infrastructure schemes - like two elevated roads in Anna Salai, Chennai, flyovers at all intersections on the IT corridor, outer ring road for Coimbatore, and four-laning of Coimbatore-Nilgiris Highways. The other major highlights are: SIPCOT industrial estate in Villupuram district, Chennai Metro Rail project will get Rs.600 crore, the State will spend Rs.120 crore for effluent treatment project at Tirupur, southern districts to get more industrial projects and government will encourage setting up of hotels and tourism projects in new destinations.
The common man will welcome most the cut in VAT on items like branded coffee powder, sweets and savouries, ready mix food items etc., The VAT exemption will also cover degradrable goods like plates, cups made of areca palm leaf, zari to benefit handloom weavers and ice blocks used by fishermen. Besides there will be no purchase tax on raw materials. The existing 12.5% VAT will be slashed to 4% on a host of items.
The Budget has sought to retain thrust on social justice and inclusive growth even while stepping up outlay for development programmes. There is an all time high outlay of Rs.17,858 crore for social security net and Rs.12,285 crore for capital expenditure.
The Budget has sought to retain thrust on social justice and inclusive growth even while stepping up outlay for development programmes. There is an all time high outlay of Rs.17,858 crore for social security net and Rs.12,285 crore for capital expenditure.
As part of the 11th plan (2007-11) outlay Rs.85,344 crore, it is proposed to enhance the annual plan size to Rs.20,000 for 2010-11 against Rs.17,500 crore approved by the Centre for current year. The other major provisions in the budget are, Rs.1,002 crore for old-age pension, Rs.924 crore for noon meal scheme, Rs.891 crore for Integrated Children Development scheme, Rs.750 crore for Kalaignar Insurance scheme, Rs.250 crore for purchasing 3,000 new buses. On the industrial front, the government is encouraging dispersal of new industries with additional incentives. As a result, Videocon Group and Sundareswar Alloys from Hong Kong are setting up projects in Madurai and Sivaganga districts.
Almost all industry bodies and chambers of commerce have hailed the budget as people-friendly, growth-oriented and supporting one. FICCI-TN has welcomed the proposal to upgrade road infrastructure and rural-urban connectivity and said the budget is a model scheme for ‘education for all’. The proposed industrial park in Villupuram is a signal for developing every district not only as an agriculture based one but also as an industrial co-hub. CII-TN said the allocation of funds for school and higher education, healthcare, road development and housing would ensure an inclusive and equitable growth in the state. Allocation towards road development in and around Coimbatore and hut-free scheme are extremely commendable. The FIEO welcomed the government’s support to the knitwear industry in Tirupur to set up CETP and marine discharge project. Southern India Chamber of Commerce and Industry commended the government for not burdening the industry with new taxes. Grant of exemptions to various commodities and products would benefit fishermen, weavers, merchants and farmers. Hindustan Chamber of Commerce said allocation for MSME sector was a positive sign. Besides, the fiscal deficit has been narrowed down gradually. Tamil Nadu Chamber of Commerce said that allocation of funds for strengthening urban infrastructure facilities will lead to industrial growth and pave way for smooth cargo transportation. The dredging and desilting of rivers and lakes will improve the irrigation facilities that in turn will help agriculture. Representatives of traders, teachers, farmers and employees’ associations also welcomed the budget proposals.
However, the opposition parties, unable to fix the DMK government’s budget on any particular issue for commission or omission, made vague points of criticism in most generalized terms. While it is no wonder that Jayalalitha, as usual, hurls reckless and irresponsible invectives unabashedly exposing her hollowness. (It is a pity that the State had a person as CM for two terms, who does not know the difference between ‘revenue deficit’ and ‘fiscal deficit’), it is strange and unbecoming of the leaders of CPI and CPM of being picked big holes in their critical statements by the ever-vigilant and watchful Kalaignar. It is long since Vaiko had joined the bandwagon filmy part-time politicians providing comic relief in the State political arena.
That Jayalalitha, the infamous author of drastic cut down of expenses on everything good under the guise of fiscal prudence, now stating that ‘there is nothing wrong in presenting a budget with deficit if it would ensure growth and far-sighted schemes’, is like a devil preaching scriptures!
The difference between Jayalalitha and Kalaignar is that while she attempted cutting the foot to the size of the footwear, he got the footwear to the size of the foot. Kalaignar is on this path of growth and welfare right from Day one of his assuming office on 13 May 2006, when he signed the government orders for distribution of PDS rice @ Rs.2 per kg. (later @ Re.1), waiver of farm loans to the tune of Rs.7,000 crore and for provision of two eggs (later three eggs) per week under Nutritious Meals Scheme and subsequently provided the means (funds) for the same in the budget presented on 22 July 2006. Where there’s a will there’s a way!
(28-03-10
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