Thangam’s tax-fee budget lays thrust on poverty alleviation, child, women development & industry promotion

CHENNAI: Tamil Nadu Finance Minister Thangam Thennarasu on Monday presented the State's Budget for the financial year 2024-25, laying thrust on poverty alleviation, empowerment of children, women, youths and stimulus for industrial development in the state.

The tax-free budget pegged the revenue deficit of the state in the budget estimates for 2024-25 at Rs 49,278 crore, against the Rs 44,907 crore in the revised estimates for 2023-24, while the fiscal deficit of the State has been stabilized at 3.44% for the next fiscal.

CM Thayumanavar scheme to rescue five lakh families from poverty in 2 years.

Tabling the financial report for the next fiscal in the State Assembly, Thennarasu cited the Niti Ayog multidimensional poverty index, which put the State's poverty at 2.2%, and announced that the State government will launch a new CM's Thayumanavar Scheme to rescue around five lakh poorest families from poverty by providing all the necessary assistance in an integrated manner in the next two years.

Under the Scheme involving the participation of elected representatives, charitable organizations and banks, most vulnerable sections like destitute, elderly persons living alone, single-parent families, orphaned children, mentally challenged, differently-abled persons and families with children requiring special assistance would be identified.

In addition to fulfilling their basic needs, their education, employment opportunities, skill development and housing requirements would be met under the scheme.

Identification of the poorest of the poor families would be carried out through convergence of official databases, field inspections, community participation, and Gram Sabha sessions.

Kalaignar's Dream House Scheme - Rs 3,500 crore for one lakh concrete houses

To achieve hut-free Tamil Nadu (The State has eight lakh huts now) by 2030, the Finance Minister announced a new Kalaignarin Kanavu Illam (Kalaignar's Dream Home) scheme.

One lakh concrete houses would be constructed in 2024-24 at a cost of Rs 3.5 lakh per house in the first phase for which Rs 3,500 crore would be allocated in the coming fiscal.

Landless selected beneficiaries would provide house sites and the funds deposited directly in their bank accounts for house construction.

CM Breakfast scheme to rural aided schools; New Child welfare and Special Services dept

In a bid to cater to the students, Thennarasu announced the extension of CM's Breakfast Scheme to government aided schools in rural areas from the coming academic year.

A budgetary allocation of Rs 600 crore was made for the initiative, which would cover 2.5 lakh student from Classes I to V.

Accepting the recommendations of Justice K Chandru committee, the financial minister announced the renaming of Directorate of Social Defence as Department of Children Welfare and Special Services and creation of additional posts like Chief Protection Officer for efficient operations and administration of Government Observation Homes, Special Homes and Places of Safety.

Extension of Vidiyal Payanam, Puthumai Penn schemes

Echoing Chief Minister M K Stalin's focus on women empowerment, Thennarasu announced that the free bus ride scheme, Vidiyal Payanam Thittam, would be extended to hilly areas of Nilgiris, Kodaikanal and Valparai from the next fiscal.

Rs 3,050 crore has been provided in the BE 2024-25 as subsidy for the entire scheme, which saw an average 50 lakh women travel daily in STC buses and a total of 444 crore trips so far.

The government also announced the extension of Moovalur Ramamirtham Ammaiyar Puthumai Penn Thittam to girl students of government aided schools in Tamil medium from next academic year.

Rs 370 crore allocated the scheme in the coming fiscal.

A monthly assistance of Rs 1,000 each is being provided to 2.73 lakh girl students to promote higher education among girl students whose enrolment in first year of college increased by 34% after the scheme implementation.

The government also announced new 'Thozhi' hostels for working women at Chennai, Coimbatore and Madurai at Rs 26 crore for the benefit of 345 women.

Thennarasu also announced an additional allocation of Rs 2 crore to the Tamil Nadu Transgender Welfare Board to cover all educational expenses, including tuition and hostel fees of transpersons pursuing higher education.

New Grand library in Coimbatore, coaching for job aspirants

Seeking to offer stimulus to education, a new grand library and science centre to be named after Muthamizh Arignar Kalaignar would be established in Coimbatore.

Targeting educated youths, the budget has proposed new skill labs in 100 government and government aided engineering and arts and science colleges at Rs 200 crore in the coming fiscal.

To enhance the success rate of youths appearing for central exams like Staff Selection Commission, Railway and Bank exams, a Budget allocation of Rs 6 crore has been made for the coming fiscal for 1,000 candidates to be selected annually for providing quality training with boarding and lodging facilities for six months in Chennai, Coimbatore and Madurai regions.

To help poor and marginalized boys of government schools realize their dreams of higher education and transform into achievers, a grand scheme Tamizh Pudhalvan scheme will be implemented.

Under the scheme, about 3 lakh boys completing stand VI to XII in government schools would be provided Rs 1,000 financial assistance per month at Rs 360 crore from the next fiscal.

The Budget also promised proactive steps to ensure that education loans to the tune of Rs 2,500 crore was sanctioned and disbursed by various banks for one lakh college students. Maximum threshold for availing free treatment during the first 48 hours' post-accident would be doubled to Rs 2 lakhs under Innuyir Kaapom: Nammai Kaakum 48 Thittam.

Payroll subsidy to promote women employment at industrial units, high pay jobs at GCCs

Payroll subsidy for women, differently abled and transgender employees for two years to all new industrial units providing direct employment to over 500 such individuals. A new Space and Industrial and Propellant Park spread over 2,000 acres to promote space technology. Payroll subsidy for jobs paying above Rs 1 lakh per month at Global Capability Centers has also been proposed in the budget.

Global StartUp Summit in Chennai in 2025

On the lines of the Global Investors Meet, the state government has proposed a Global Start-up Summit in Chennai in January 2025 to bring together leading startups and accomplished young entrepreneurs from across the world to further promote StartUps in Tamil Nadu.

Dedicated industrial estates for MSMEs in Dindigul, Sivagangai, and Thiruvarur to be developed by TANSIDCO on a total area of 80 acres at Rs 32 crore. In a bid to sustain its push for the IT sector, the state government has announced free wi-fi services in 1,000 prime locations in corporations, a new Tidel park at Madurai and Trichy, and establishment of a new Tamil Nadu Artificial Intelligence Mission to develop guidelines for constructively leverage AI in education, employment, industry and research.

Allocation for departments

Rural development and Panchayat Raj = Rs 27,922 crore

Municipal Administration and Water Supply = Rs 25,858 crore

Social welfare = Rs 7,830 crore

School education = Rs 44,042 crore

Higher Education = Rs 8,212 crore

Youth and sports welfare = Rs 440 crore

Industries = Rs 2,295 crore

MSMEs = Rs 1,557 crore

Adi Dravidar and Tribal Welfare = Rs 3,706 crore

WRD = Rs 8,938 crore

Backward classes and Minorities welfare = Rs 1,429 crore