Tamil Nadu CM hails Union budget as "growth-oriented"

"I commend the Union Finance Minister for presenting the Budget which is fairly balanced, growth-oriented, that focuses on development of agriculture, rural development and health sector," he said about the first post-GST regime budget by Arun Jaitley.

He welcomed the Centre's decision to give a 'big push' to the agriculture and allied sector, especially the enhancing of minimum support price (MSP) for all crops by about 1.5 times.

However, he said, "implementing this is a big challenge."

Palaniswami lauded other proposals like 'Operation Green'

meant to benefit bamboo sector, proposed liberalisation of exports of agricultural commodities and full tax deduction to Farmer Producer Companies with turnover up to Rs 100 crore among others.

"Overall, there are many initiatives in the agricultural sector which will benefit the farming community," the Chief Minister said in a statement.

Referring to the special focus on expanding the capacity of suburban train systems in Mumbai and Bengaluru, he said Chennai was expanding fast and it also needed strengthening of its suburban train system.

"This has been left out in the Budget. I hope the Union Government will also improve the suburban train system of Chennai," he added.

He said the proposal to reduce the rate of corporate tax to 25 per cent to companies with turnover of less than Rs 250 crore would benefit  Micro, Small and Medium Enterprises (MSMEs) but added the sector needed greater support.

Palaniswami welcomed the tax concession on interest accrual to senior citizens but indicated that the salaried classes could have been given a better deal.

Noting that the country was going through a 'difficult'

phase of economic development, the Chief Minister said it needs acceleration and stabilisation of the growth momentum.

The budget should give a boost to increase investment and generate more jobs, he said.

"Given these circumstances, this budget is addressing the critical issues effectively and the Union Finance Minister has put his best efforts to present a balanced and growthoriented budget," he said.

Palaniswami hoped that the budget will bring fiscal stability to the country and accelerate economic growth.