Inside DMK-Govt’s First Full Budget: Focus on Education, aim to Reduce Revenue Deficit

The first full Budget of the current Dravida Munnetra Kazhagam (DMK) government for the financial year 2022-23 was presented to the Tamil Nadu Assembly by the state Finance Minister on March 18. The DMK formed the government in May last year.

As soon as the Budget presentation began, the members of the Opposition party, All India Anna Dravida Munnetra Kazhagam (AIADMK), started a protest and staged a walkout claiming false cases were filed against them. Last month, former Tamil Nadu minister D Jayakumar was arrested by the police for allegedly assaulting and disrobing a man.

In the Budget estimates for the year 2021-22, the state Finance Minister Palanivel Thiaga Rajan said that Tamil Nadu’s fiscal deficit is set to decline to 3.80% from 4.33%. 

He said that the revenue deficit is set to decrease by Rs 7,000 crore. The state’s revenue deficit has risen every year since 2014.

During his speech, Thiagarajan also said that CM MK Stalin had requested the Centre for extension of the GST compensation period by two years, which ends in June 2022. Following the implementation of GST by the Union government, the state has been facing severe revenue loss, he said.

EDUCATION BUDGET

Given that the COVID-19 pandemic took a heavy toll on students and the dropout rate was high last year, attention was given to education in the Budget. 

The 2022-23 Tamil Nadu Budget allotted Rs 36,895.89 crore for the state school education department.

Ilam Thedi Kalvi, Tamil Nadu’s chief programme to address the learning losses caused by the pandemic, was allocated Rs 200 crore as part of the budget for school education.

The government will also provide free textbooks to government school students from Class 1 to 10 at a cost of Rs 15 crore.

In a significant step, the DMK government recognised that the enrolment ratio of girl students from government schools in higher education is very low. Hence, the Budget announced Rs 1,000 per month for each girl student to pursue higher education. The scheme was allotted Rs 698 crore and will benefit girls who studied in government schools from classes 6 to 12.

Rs 250 crore was allotted to improve infrastructure in government colleges while Rs 162 crore was allotted for providing cycles to school students.

The Finance Minister announced that Tamil Nadu will support medical students who returned from war-torn Ukraine to continue their studies.

INDUSTRY AND INFRASTRUCTURE

Thiagarajan announced a slew of measures including the allocation of Rs 500 crore for the Singara Chennai 2.0 project aiming at flood-mitigation. This is besides the Rs 7,474.94 crore allocated to the Revenue and Disaster Management Department.

An additional Rs 3,385 crores was allocated for water management in the state. 

Rs 1000 crore was allocated to upgrade 19 government hospitals.

Rs 2,130 crore was allotted to Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme and Rs 3,000 crore allotted to Jal Jeevan Mission. 

New industrial parks are to come up in Vellore, Coimbatore, Perambalur, Madurai and Thiruvallar, and they would attract Rs 50,000 crore investment.

The Chennai-Kanyakumari industrial corridor received Rs 1,200 crores fund allocation.

Rs 18,218 crore was allotted for highways and Minor Ports Department.

Special attention was given to strengthen infrastructure for mental health. The Kilpauk Institute of mental health at Chennai is to be upgraded to Tamil Nadu Institute of Mental Health & Neuro Sciences (TNIMHANS) at the cost of Rs 40 crore.

BUDGET FOR WOMEN

Funds were not allotted for the much-awaited poll promise of the DMK to provide Rs 1,000 to homemakers. The promise was made as a means to acknowledge domestic work.

The Finance Minister said that the work to identify eligible beneficiaries of the assistance to women heads of families is in full swing. But, the scheme would be implemented only when the financial situation of Tamil Nadu improves.

Rs 1,520 crore was allocated for free bus travel for women, whose patronage has increased from 40% to 60% since the scheme was implemented last year. Rs 928 crore was allocated towards bus travel for students.

SOCIAL SECURITY

The state welfare department was allocated Rs 17,901 crore.

Rs 50 crore has been allocated for Naan Mudhalvan, a pet project of the chief minister to train five lakh youths every year by enhancing their knowledge, intellect and skills.

Allocation of Rs 2,800 crore was made for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme for the financial year 2022-23. 

Rs 4,216 crore was earmarked for implementing old age pension and other social security schemes.

The Tamil Nadu government will also set up a new social media monitoring cell within the state Police Department to tackle the menace of hatred on social media.

Tamil Nadu is set to collect data on migrant workers in the state, to provide information and help to them.

The state government announced the setting up of a Forest Commission to study and make recommendations on various matters related to human and wildlife conflict, improving forest cover, etc.

The electricity subsidy received Rs 9,377 crore fund allocation.

Moreover, a whopping Rs 100 crores was set aside for renovation of 1,000 year old temples.