Chennai: The Southern India Chamber of Commerce and Industry (SICCI) commends the Tamilnadu State Budget which is balanced and growth oriented.
In a press release, president of SSICCI, Ar Rm Arun said, ‘The Chamber welcomes the Budget proposals that pave the way for financing of infrastructure, scaling up of investments, generation of revenues and the skilling of our youth. It is also appreciable that for the first time since 2014 the revenue deficit is set to decrease by over Rs 7,000 crore. The building of the Knowledge city, the Port-Maduravoyal corridor project, new industrial parks in Vellore, Coimbatore and Perumbalur are all effective initiatives that will add to the economic growth of the state.’
‘Tamilnadu has made great strides in drawing investments in the EV sector. The introduction of 2,000 electric buses this year will help bring more awareness among the public in adopting to the new EV ecosystem. With the Union Government planning for changes to the SEZ policy, the Rs 100 crores for creating infrastructure for export zones is a step in the right direction,’ he said.
The Chamber welcomes the plan to implement a special programme along with private firms and industries to create skilled laborer’s to meet the demand of the industries.
‘The Chamber would like to recommend the restructuring of the Government debt as the possible starting point for the strategy to drive growth. The re-structuring would help in lowering the interest burden and provide more fiscal space to the government. The
government needs to explore all avenues to increase revenue such as through taxes, Government services or even through sale of assets.’
‘The Government could also explore assets that could perhaps be monetized to reduce debt. In this context, getting Industry
moving at all costs is imperative to increase revenue and generate growth. The Government needs to explore all options to increase its income, expand the indirect tax collections and plug the revenue leaks. While the Chamber commends the Government on its proactive approach in attracting new investments, the Government also needs to effectively take care of the existing investors.’
‘The Government also needs to have a firm handle on freebees – while not only does it increase expenses, it also perhaps induces a lackadaisical approach among working class’.
He added, ‘With a good mandate at both local and state level, the Chamber calls for the Government to take bold measures in this regard. Public transport is an option that needs to be attractive, sustainable and easy to use for the commuters.’
‘The SICCI commends the government for its fiscal prudence in projecting a fiscal deficit at 3.63 per cent of the Gross State Domestic Product (GSDP) which is acceptable, under the circumstances. On the whole, this budget is growth oriented and inclusive, offering relief for both the industry and the common man’
Meanwhile, Tamilnadu Finance Minister Palanivel Thiaga Rajan presenting the budget yesterday said that there will be a significant reduction of the Fiscal Deficit from 4.61 per cent to 3.80 per cent during this financial year.
Palanivel said, ‘Revenue Deficit by over Rs.7,000 crore, reversing an alarming trend of increasing deficits every year since 2014. The revenue deficit is estimated at Rs 52,781.85 crore in 2022-23. The total capital expenditure is expected to be at Rs 43,832.54 crore’.
“With the economy bouncing back, we must rebalance our priorities and focus on social infrastructure and development without compromising on welfare schemes,” he added.
Palanivel further said,” In order to motivate government school students to aspire to join higher education institutions like IIT, IISC & AIIMS, the Tamil Nadu government will bear the entire cost of undergraduate education of students who studied in government schools from classes 6-12.”
He also said that all assistance would be provided to students who decided to discontinue their education after returning from Ukraine, amid the on-going crisis.
“The Chief Minister’s free travel scheme has increased the proportion of female passengers from 40 per cent to 60 per cent,” he added.