Tamil Nadu FM O Panneerselvam presents Interim State Budget for the year 2021-22

On February 23, 2021, Tamil Nadu’s Finance Minister O Panneerselvam presented the Interim State Budget for the year 2021-22 at Chennai’s Kalaivanar Arangam. It was Paneerselvam’s 11th Budget presentation.

Financial Points

• Tamil Nadu’s (TN) Debt is set to increase to INR 5.7 Trillion from INR 4.85 Trillion.
• The revenue for the year 2021-22 has been projected at INR 1, 80, 700.62 crore.
• The State’s Fiscal Deficit is expected to be at 4.99%

Growth & sector-wise performance

• TN is expected to register a positive GSDP(Gross State Domestic Product) growth of 2.02% in 2020-21 compared to 7.7% negative growth project at all-India level.
• The sectors which recorded the strongest growths were Agriculture at 5.23%, livestock & fisheries sectors also recorded a strong growth.
• The growth in the secondary sector is 1.25% & in the service sector it was 1.64%.

Major Approvals

• INR 1, 738.81 Crore allocated for Pradhan Mantri Fasal Bima Yojana (PMFBY)
• The budget has provided accident-cum-life insurance cover for 55.67 lakh breadwinners (single source of income) from Below the Poverty Line (BPL) families & enhanced medical insurance cover for government employees.
• Approval was granted for construction of an Industrial park at Kallapalayam in Coimbatore.
• INR 1276 Crore allocated for Tribal sub-projects in the state
• 62 Investment projects worth INR 39, 941 crores granted approval
• INR 6448 Crore for the Chennai-Kanyakumari Industrial route project
• INR 200 Crore allocated for Tamil Nadu Skill Development Corporation
• INR 22, 218.58 crore has been set aside for the rural development sector

Metro Rail in Coimbatore

A report is being prepared for Establishing Metro Rail in Coimbatore at a cost of INR 6, 683 crore

Adi-Dravidar Community

• INR 100 Crore allocated for improving the residential accommodations of people belonging to the Adi Dravidar community.
• A Budget of INR 1932 Crores has been allocated for improvement of the community.

Stimulus from World Bank

Tamil Nadu has received INR 1492 crore from the World Bank for financing TN’s housing sector.

Health

• INR 19, 420.54 Crore has been allocated for the health sector
• INR 144 Crore has been set for Amma Mini Clinics which provides basic healthcare facilities like checking blood pressure, blood oxygen & body temperature.

Education

• INR 5, 478.19 crore has been allocated for the Higher Education Department.
• The Budget speech also highlighted that TN’s Gross Enrolment Ratio stands at 49% which is twice the national average.
• It also states a Gender Parity Index of 0.97 in 2018-19 highlighting the equitable access of women.

Click here to read the full Budget document

About Tamil Nadu:
Chief Minister – Edappadi K Palaniswami
Governor – Banwarilal Purohit