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TN tax reforms key agenda of PTR’s maiden budget today
Amid public expectations running high, the much-awaited State budget would be presented in the Assembly on Friday by Finance Minister Palanivel Thiaga Rajan.
This comes close on the heels of the Minister releasing a white paper on the State’s finances, as was promised in his party’s poll manifesto a few months ago. PTR is expected to deliver feasible solutions to lower the outstanding public debt of Tamil Nadu, which is currently at a whopping Rs 5.7 lakh crore.
The Minister’s proposal for progressive tax reforms to reduce the outstanding public debt on citizens of Tamil Nadu (Rs 2.63 lakh per family) has heightened a sense of assurance among the people as the State struggles to recover from a brutal second wave.
Whether the government would hike the property and the vehicle tax, which the Minister said was long overdue, apart from electricity and bus tariff to reduce the overall revenue deficit, would be known on Friday when he unveils the financial policy for the remainder of the fiscal.
The budget would also reveal how the Finance Minister, who had pegged the revenue deficit of the state for 2020-21 at Rs 61,320 core, which is 3.16% as percentage of the state GDP (Gross Domestic Product), proposes to strike a delicate balance between populism (poll promises) and reforms.
The budget session would also help understand if the ruling party would fulfil its poll promises like distributing Rs 1,000 assistance to home makers and reducing the tax on petrol. The ruling DMK is also expected to pass resolutions against the three farm laws and demand the scrapping or exempting Tamil Nadu from NEET.