BUDGET

Tamil Nadu State Budget 2012 13 Finance Minister 

O Panneerselvam Speech Highlights

• 10 lakh farmers to be brought under insurance scheme
• 100 crore to Equitable Development of State
• 1000 Crore for Thane Puyal affected Region
• 3000 new buses to be bought with Rs. 548 Crore
• Annadanam Scheme in 50 more Temples
• Around Rs. 3068 crore subsidy for TN Electricity Distribution
• Around Rs. 740 crore to widen 1500 km road
• E-chalan system in Madurai, Coimbatore, Nellai and Tirchy
• Food Production target Rs 1.20 crore metric ton
• Goverment Employees Insurance Raised to Rs 4 Lakh
• Laptop for VAO at Rs. 22.49 crore
• New State Disaster Management Team
• No VAT for Fertilizers
• Patta for 1 lakh houses
• Rs 50,000 cr for 20,000 Solar Street Lights
• Rs 950 crore for National Rural Health Scheme
• Rs. 1.93 crore to create employment opportunities in private sector
• Rs. 20.75 crore to recover land grab
• Rs. 200 Cr for New Urban Poor Scheme
• Rs. 400 crore for 4340 Police quarters
• Rs. 4000 crore loan for crops through co-operative society
• Rs. 50 crore for integrating rivers
• Rs. 65 crore Road Safety
• Rs. 736.15 crores for Courts
• Tamilnadu GDP Growth 9.2%

***********************************************************************************

Tamilnadu budget 2011-2012

Tamilnadu budget 2011-2012 presented by ADMK Finance Minsiter Mr O.Panneerselvam in the Tamilnadu Assembly session. This is the first budget that is being presented by the ADMK after coming to power in may 2011.

Highlights of Tamilnadu budget 2011-2012

·        New schemes worth Rs. 8,900 crore was announced by the finance minister in the assembly

·        The overall outstanding debt for 2011-2012 fiscal year for Tamilnadu state was expected to be around Rs. 1,18,610 crore as announced by the finance minister. There was a marginal revenue surplus of Rs. 173 crore presented in the budget today. For the first time the budget size of tamilnadu had crossed the Rs. 1,00,000 crore mark.

Important highlights about the tamilnadu budget 2011-2012:

•  Around 1,006 temples across tamilnadu will be renovated

•  Construction of a new dam across Cauvery River at Rs. 32 crores.

•  A cyber crime division to be opened in Salem and Tirunelveli

•  Rs. 5000 crore was allocated to maintain 2500 km Road Highways present in Tamilnadu. This will be done with the aid from World Bank.

•  Monthly Salary is raised to Rs. 1000 for temple archakars and Village poojaris

•  ADMK election promise of launching Arasu cable TV  will be implemented soon.

•  Drinking water storage in Chennai corporation to be increased to 4.20 tmc.

•  Free rice distribution through Public Distribution System (Ration shop)    to be done at a cost of Rs. 4500 crores.

•  Rs. 367 crores to improve the condition of dams, ponds and waterways.

•  Solar Powered Street Lights will illuminate the Villages at a cost of Rs. 248 crores. It is proposed to implement 20,000 street Lights per year.

•  Rs. 74 crores for building fish storage rooms

•  Tamilnadu will be power cut free from August 2012 which was also in the election manifesto.

•  13 fish storage centres along coastal areas of Tamilnadu

•  Around 115 Lakh metric tonnes of food Production Planned to cater the needs of the people.

•  Crop loan worth Rs. 3000 crore without any interest is to be given to the villagers to promote agriculture.

•  A Industrial corridor is proposed along the Madurai - Thoothukudi highway.

•  The current Fiscal Deficit stands at 2.9%

•  Rs. 56 crore to be spent to distribute cows

•  Rs. 130 crore was earn marked for Judiciary system

•  Rs. 146 crore will be spent for the well being of TamilNadu Prison

•  Hogenakkal Water Scheme has been alloted with Rs. 400 Crores

•  Rs. 130 crore to be spent to distribute 4 sheeps to each poor family

•  Rs. 1000 crore allotted for around 6 lakh Free Green Houses

•  Rs. 147 crores was allocated to the Tamilnadu Fire Department

•  The existing Annadanam Scheme will be extended to 106 more Temples in Tamilnadu

•  To check the drop out percentage Rs. 2000 for Class XII students will be given

•  A new National Law School will come up in Srirangam

•  New Engineering College will be built in Podinayakanallur

•  Tirunelveli will be getting a new Government Veternary College soon

•  Rs. 51 crore will be spent to modernize and upgrade Tamilnadu Police with sophisticated gadgets

•  Rs. 4000 aid will be given to fishermen during the period when they do not venture into the sea.

•  Integration of both the Chennai Police and Puranagar Police and to bring them under single window

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,



The Mechanics of Budget

Why Budget?
Only Parliament can authorise the government to collect funds by way of taxes,duties
and borrowings.All goverment expenditures need Parliament's approval.

Starting the process
The Budget division of the economic affairs department issues a circular to all
ministries,states and UTs,autonomous bodies and the defence forces for
preparing revised estimates for the current financial year and the budget
estimates for the next financial year.

Process:1
                                     The Budget Team

DEPARTMENT OF EXPENDITURE
Expenditure

DEPARTMENT OF ECONOMIC AFFAIRS
Non-Tax Revenue
Deficit

DEPARTMENT OF REVENUE
Tax Revenue

THE PLANNING COMMISSION
Sets overall targets for ministries

THE COMPTROLLER & AUDITOR GENERAL
Keeps a tab on accounts

ADMINISTRATIVE MINISTRIES
State their requirements and plan priorities

OTHER STAKEHOLDER
Extensive consultations are held with other stakehoders industry,political
parties,economists and civil society groups


Process:2

Once the pre-budget meetings are over,a final call on the tax proposals is taken by
the Finance Minister,in consultation with the PM

Process:3
Passing the budget

PRESENTATION

The Finance Minister presents the budget in LS on the last working day of Feb

The Budget speech has two parts.Part A deals with general economic survey &  policy statements
while Part B contains taxation proposals

The Annual Financial Statement is laid on the table of the Rajya Sabha after the FM's speech


DISCUSSION

A few days after the budget is presented,the LS discusses the Budget as whole and not the details for 2 to 3 days

TheFM makes a reply at the end of discussion

A Vote on Account for expenditure for the next two months of ensuing year is obtained after which
the house is adjourned

During this period,demands for grants are considered by relevant standing committees


VOTING

The standing Committee reports are presented to the House,which discusses & votes on demands for grants

The Speaker puts all the outstanding demands to the vote of the House.This device is called
'guillotine'.

After the general discussion & voting on demands for grants,the govt introduces the Appropriation Bill.This Bill is to give authority to the govt to incur expenditure from & out of the
Consolidated Fund of India

SECURITY TRIVIA
Budget text prepared on computers which are delinked from all networks Several
officials and staff are quarantined,right from those involved in printing to
legal experts who check the text of the tax acts Intelligence Bureau sleuths
keep a close eye on all those quarantined,and all communication
devices,including mobile phones,are monitored and sometimes jammed Storage
devices are out of bounds

Here are the highlights from the Union Railway Budget 2011-12 speech 

• Honourable railway minister Mamata Bannerjee ends budget presentation
• No hike in fares of general trains . 
• Rise in fares of existing Durontos .
• Mumbai harbour line will have a fast lane .
• Fares of 17 trains set to increase.
• Double-decker AC trains for Ahmedabad-Mumbai,jaipur-Delhi.
• New industrial park at Bongaigaon & Nandigram.    
• 1,320 MW thermal plant in Agra and 1,300 MW plant in AP
• Concession to senior male citizens raised to 40% from 30% .
• Safety is priority, says Mamata .
• 47 additional services on Mumbai suburban section.    
• To start Kabi Guru Express on the 150th birth anniversary of Rabindrnath Tagore.
• To introduce 56 new trains in FY-12.
• To start Rajrani ExpressTo start student special trains.
• AC double decker rail on Jaipur-Delhi and Ahmedabad-Mumbai.
• To launch 3 new Shatabdi trains in FY 12 .
• Improve convergence of social and financial inclusion schemes.
• Need for efficient taxation of goods and services by GST .
• 50 new services for suburbs in Kolkata .
• 9 new Duronto trains .
• Work on upgrading 442 stations to be completed by March 31
• Reservation charges for sleeper class is 5 and ac class for 10 is fixed
• On the financial performance for the current year, the budget disclosed that disruption of train movement resulted in a loss of Rs. 1,500 crore and Rs. 2,000 crore due to the ban on export of iron ore. Loading target was reduced by 20 million tonnes (MT) to 924 MT.
• Gross traffic receipts have been fixed at Rs. 94,840 crore, which is higher by Rs. 75 crore over budget estimates.
• The ordinary working expenses has been fixed at Rs. 67,000 crore, an increase
  of Rs. 2,000 crore over BE and the current dividend liability to be fully
  discharged.
• The next year's budget provides Rs. 9,583 crore for new lines. A target of 1,300 kms of new lines, 867 kilometres of doubling of lines and 1,017 kms of guage conversion has been targeted in the
  new fiscal.
• The new Duronto expresses will run between Allahabad-Mumbai, Pune-Ahmedabad, Sealdah-Puri,
  Secunderabad-Vishakhapatnam, Madurai-Chennai, Chennai-Thiruvananthapuram, Mumbai Central-New Delhi, Nizamuddin-Ajmer and Shalimar-Patna.
• Air-conditioned double-decker services are proposed to be introduced on Jaipur-Delhi and Ahmedabad-Mumbai routes. The three new Shatabdi services will run between Pune-Secunderabad, Jaipur-Agra and
  Ludhiana-Delhi.
• The Minister announced the introduction on pilot basis of a pan-India, multi-purpose 'Go India' smart card, which would be a single-window package for passengers for seamless payment for tickets for
  long distances, suburban, metro journeys. The card can be used at booking counters and on internet
• In a bid to provide improved comfort and features and more exclusivity, the Rail budget proposes to introduce a new super AC class of travel. Provision of internet access on Howrah Rajdhani Express is being introduced as a pilot project.
• A new portal for internet booking is being launched shortly and tickets booked through this would be cheaper with a charge of Rs. 10 for AC classes and Rs. 5 for others. The Budget provides for upgrading 236 more stations as 'Adarsh' (model). 47 additional suburban services in Mumbai and 50 new suburban services have been proposed for Kolkata.
• Two new passenger terminals in Kerala and one each in Uttar Pradesh and West Bengal have been proposed. A feasibility study to raise the speed of passenger trains to 160-200 kms per hour is proposed to be undertaken. As an incentive to states maintaining normal movement of trains, Banerjee announced a special package of two new trains and two projects.
• As a measure of safety, Railways have sanctioned deployment of anti-collision devices in eight zones while fog-safe device will be deployed on the basis of GPS. All unmanned level crossing up to
  3000 in number will be eliminated. To promote tourism, special trains called 'Janambhoomi Gaurav' will be introduced on four routes while 10 'Rajya Rani' Express trains connecting state capitals with important cities in respective states will be introduced.
• 13 new passenger services, 22 Diesel Electrical Multiple Units (DEMU), 8 Multiple Electrical Units services are to be introduced while the run of 33 trains will be extended and frequency of 17 trains will be increased. A scheme for socially-desirable projects named 'Pradhan Mantri Rail Vikas Project' with non-lapsable fund has been proposed.
• 10,000 shelter units have been proposed for track side dwellers in Mumbai, Sealdah, Siliguri and Tiruchirapalli on a pilot basis.