TN finance minister Palanivel Thiaga Rajan slashed the tax on petrol by ₹3 per litre, on the instructions of the chief minister, while presenting the DMK government’s maiden budget in a paperless form on Friday. This move is expected to cost the government ₹1,160 crore.
TN finance minister Palanivel Thiaga Rajan slashed the tax on petrol by ₹3 per litre, on the instructions of the chief minister, while presenting the DMK government’s maiden budget in a paperless form on Friday. This move is expected to cost the government ₹1,160 crore. He went on to add that owing to the impact of successive waves of the Covid-19 pandemic and the economy gradually getting back on its feet, the time was not yet ripe for fiscal consolidation.
“He has taken a shot at the Centre by cutting local taxes by three rupees on petrol,” financial consultant Anand Srinivasan said.
“Nirmala Sitharaman is refusing to budge and the local BJP people have been saying the state is making a lot of money. So, he has taken a political potshot and lost about ₹1,200 crores for this year. But it’s a message he’s sending out that he does care about the middle class and the Centre is insensitive to them.”
Srinivasan went on to add that while the Budget did have a number of note-worthy social initiatives that should be lauded, he expected more from Thiaga Rajan in terms of divestment.
“This was a populist and please-all budget,” he said. “He has postponed setting the finances right. He very eloquently pointed out in the white paper, what was wrong with Tamil Nadu’s finances so we were expecting them to start fixing it today. But he has postponed it for one year saying that he needs more time to study the data and also said this is a pandemic year and we do not know how many more waves will come and so, he decided to postpone starting the correction of the finances.”
Ar Rm Arun, president, SICCI Chamber said that he welcomed the move to cut the cess per litre on petrol as he believed it would provide great relief to the public.
“This announcement could be seen as a populist measure in the light of the White Paper released by the finance minister which had underlined a public debt of ₹2,63,976 per family. However the reduction in the fuel price would have a cascading impact with lower prices and will come as a relief to the common man,” he said.
Captains of industry like Venu Srinivasan, chairman, TVS Motor Company called the Budget a positive, forward-looking, progressive Budget with necessary key focus on strengthening social welfare, employment and economic growth.
“The government has clearly focused on growth, and it aims to leave no stone unturned to achieve the same. The strong emphasis on infrastructure and healthcare will give the requisite boost to the economy and drive it on the trajectory of economic growth,” he said.
“The array of announced measures will prove a milestone and is likely to boost the state economy. Through this budget, the all-around development of all sections of society will be ensured.”