Pondy CM presents tax free budget for 2021-22, announces waiver of crop loans

Puducherry Chief Minister N Rangasamy on Thursday presented a tax-free budget for fiscal 2021-2022.

He said the budget estimate has been fixed at Rs 9924.41 crores. The Union Territory's own revenue receipts have been estimated at Rs 6,190 crores. The CM said the central assistance would be Rs 1729.77 crores including a Disaster Relief Fund of Rs 5 crores.

Rangasamy said the allocation under a centrally sponsored scheme was estimated to be Rs 320.23 crores. The union government has approved borrowings to the extent of Rs 1684.41 crores to overcome the fiscal deficit.

The Chief Minister said the total outstanding debt of Puducherry as on March 31, 2021 was Rs 9,334.78 crores, which is 22.17 percent of the Gross State domestic product (GSDP). The average growth rate of GSDP of Puducherry was around 10 percent as against the average National growth of seven percent to eight percent, he said.

He also said the expenditure incurred during the last financial year (2020-2021) was Rs 8,342.87 crores working out to 92.70 percent of the Revised Estimates.

A major portion of the financial resources went to meeting committed expenditures such as salaries, pension, repayment of loans, and interest payments.

Listing the achievements of various departments, the Chief Minister expressed his gratitude to all healthcare personnel who were rendering commendable services in controlling spreading Covid 19 in the Union Territory.

Rangasamy expressed happiness in presenting his first budget in the newly constituted 15th Assembly.

Noting that there were several farmers who were unable to repay their crop loans to the cooperative banks, he said the loan amount of the farmers would be waived.

Rangasamy noted that Rs 396 crores was earmarked under the Special component plan for the welfare of Adi Dravidar and Scheduled Tribes in the Union Territory.

He announced that the VAT on petrol in Puducherry and Karaikal regions would be "immediately" reduced by 3 percent to benefit the public, considering the impact of prevailing petrol price hike. This would bring down the price of petrol by Rs 2.43 per litre Although there was economic slowdown at present because of Covid 19 pandemic, the Union Territory''s economy is expected to gain momentum in the coming months, he said.