The Madras Chamber of Commerce & Industry welcomes the TN Budget released today which is in line with the Vision 2023 released by the CM a few days back, aiming at balancing growth and welfare. The focus on financial turn around and containing the fiscal deficit to 2.87% of GSDP, is laudable. The assurance that the State borrowing would be more for capital expenditures and for creation of infrastructure is heartening.
The Chamber appreciates the measures proposed to strengthen the manufacturing sector in the State and the projections to get Rs. 20000 cores in the next 6 months. Infrastructure is key for the development and we are hopeful that the EMRIP project and the other infra projects would be completed on time. Legislation to form TN Infra Board with CM as the chairperson and allocation of Rs 1000 crores for TN Infrastructure Fund for 2012-2013 is a good beginning.
Developing the Nagapattinam port on a PPP mode would hasten development of the Southern Region. The additional allocation to roads and road maintenance would go to improve the connectivity.
The proposed State Balancing Growth Fund should work towards balanced regional development.
Plans to improve urban infrastructure , increased allocation to Chennai Mega city project , proposals to set up waste to energy projects with private participation all go well with the current times and needs. We await the new industrial policy for greater thrust.
The issue of the day for the State is power and allocation of funds for new power projects to TANGEDCO and to strengthen transmission network , could help in the long run , if not immediately. It will be helpful if the Government comes out with an emergency action plan to mitigate the power problem in the short term. Incentives to energy consumption and renewable energy should support this. Action to implement Energy conservation Building code in commercial buildings is to be appreciated.
Focus for skill development and employment and additional allocation towards this is a welcome measure and will help industries, more particularly manufacturing. The proposal to convert State Skill Development Mission as a SPV and bring more private involvement is a welcome move.
Reduction of VAT on energy efficient devices and e- bikes, exemption to insulin etc. are steps in the right direction.
While the increase in guideline values is on expected lines, the reduction in stamp duty by 1 % should give some relief.
E- Governance initiatives and comprehensive computerization of all major departments including revenue, registration, etc., and promotion of common service centers will bring down transparency and improve efficiency.
On the whole the budget appears to be progressive and realistic and can take the State further up in economic development if the implementation and governance are closely monitored.
26th March 2012