Tax proposals to mobilise Rs. 135 cr.

By Suresh Nambath

CHENNAI, AUG. 18. Announcing the proposal to constitute a Staff and Expenditure Review Commission to identify avoidable expenditure to the Government, the Finance Minister, Mr. C. Ponnaiyan, today imposed fresh taxation measures in the State budget for 2001-02 to fetch a net additional revenue of Rs. 135.38 crores in the current financial year.

Coupling the budget with a white paper on the State's finances, the Minister said the overall deficit of Rs. 827 crores in the budget estimates would come down to Rs. 692 crores after the proposed changes in taxes. ``We expect to bridge this gap by stepping up the collection of arrears and through various economy measures.''

Referring to the ``unsustainably wide revenue deficit'' caused by the uncontrolled growth of the salaries and pension liabilities, he said an expenditure policy would be formulated by the Government to restrict the abnormal pace of growth of revenue expenditure.

As per the Central directive to comply with the uniform floor rates of sales tax, the Government had reviewed all remaining deviations and decided to take appropriate measures to avoid withholding of assistance by the Union Government.

A committee of legislators would study the maladies afflicting the public distribution system and suggest methods for rationalisation of the food subsidy regime. It would submit a report within three months. Pending receipt of the report, the Government had decided to provide Rs. 1,540 crores for food subsidy.

The cradle baby scheme would be revived by setting up full- fledged reception centres at Madurai, Theni, Dindigul and Dharmapuri districts apart from revitalising the existing centre at Salem. The Girl Child Protection Scheme would be restructured to ensure increased financial benefit to girls belonging to poor families.

Dharmapuri, one of the big, backward districts of the State, would be bifurcated and the newly created district would have its headquarters in Krishnagiri.

A new agricultural policy was being formulated for improving agricultural production and productivity for enhancing the income of farmers including farm workers and accelerating growth. The programme for reclaiming 20 lakh hectares of wastelands would be implemented through the cooperation of the private sector and people's participation. A new Department of Agri-Business would be created to facilitate development of horticulture and food processing industries in the State.

The allocation for the MLA constituency development scheme would be increased from Rs. 77 lakhs to Rs. 82 lakhs per constituency.

The Chennai Water Supply augmentation project-I would be implemented at a cost of Rs. 720 crores by drawing water from the Veeranam Lake within two years. Project-II would be posed to the World Bank for funding.

MGR Film City would be renamed MGR Knowledge City and it would provide an ``enabling platform'' to promote the latest developments in science and technology. It would have knowledge parks, hotels and a convention centre. The Government had given in-principle clearance for the construction of the TIDEL-II project adjacent to the existing one, he said.

Floating buoys with beacon lights for day and night visibility in the sea would be installed - one at every four nautical miles - to enable fishermen to remain within the country's fishing zone and not stray into Sri Lankan waters.

The Minister said the State would take up with the Centre the question of revision of royalty on lignite.

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