Tamil Nadu's DMK govt slashes petrol rates by Rs 3, to formulate state education policy

The first-ever budget of the MK Stalin-led Dravida Munnetra Kazhagam government has brought about a big relief for the people of Tamil Nadu in the form of a Rs 3 reduction in per litre price of petrol. Presenting the budget, Finance Minister P.T.R. Palanivel Thiaga Rajan outlined that the state would be facing a deficit of Rs 1,160 crore this year, owing to the reduction in the per litre price of petrol by Rs 3. 

Price of petrol reduced by Rs 3 in Tamil Nadu

The Finance Minister, in his budget speech, outlined the Central government's increasing use of cess and surcharges. "It has doubled from about 10 per cent to over 20 per cent of Central Taxes," he said, pointing out that it has specifically been witnessed on fuels - overall Union levies on petrol were increased from Rs.10.39 per litre in May 2014 to Rs.32.90 per litre today, and the levies on diesel were increased from Rs.3.57 in May 2014 to Rs.31.80 today, he noted. 

"Even as the Union Government's cesses and surcharges were increased, basic Union Excise Duty was brought down sharply. Hence, in 2020-21 even as the revenue to the Union Government from petrol and diesel went up by 63 per cent from the revenue in 2019-20, the share of the States declined sharply. Hence, the onus of providing relief to the final consumers of petrol and diesel lies with the Union Government," Palanivel Thiaga Rajan said. 

However, noting that two-wheelers have become the most popular mode of transport for the working poor, and they are feeling the pinch of the rising prices,  Finance Minister  P.T.R. Palanivel Thiaga Rajan said, "Hon'ble Chief Minister feels the pain of the working poor and the middle class, and therefore, I am happy to inform the House that this Government has decided to reduce the effective rate of tax on petrol by Rs.3 per litre. He added, "This measure will result in the state facing a deficit of Rs 1,160 crore this year."

Other major highlights of MK Stalin budget

• The Chief Minister's Insurance Scheme, worth Rs. 1,046 crore, would be implemented this year.
• A budget of 2,000 crore has been set out for the Jal Shakti scheme, which will provide drinking water to the poor.
• Underground sewage system in 27 towns with a population of more than a lakh people.
• MGNREGS will be given a new lease on life. A total of 25 crore man-days will be guaranteed.
• At a cost of Rs 500 crore, climate change mitigation measures would be implemented.
• A 500-acre Defense Industrial Park will be built in Coimbatore. This project is expected to bring in a total of 3,000 crores for the state government.
• In the next five years, 100 wetlands would be identified for ecosystem restoration at a cost of Rs 100 crore.
• A total of Rs 6,607.17 crore has been set aside for irrigation.
• Rs 703 crore allocated as a subsidy for women's bus travel.
• In Tamil Nadu, a Green Movement will be launched. In the next ten years, a massive tree-planting campaign will be launched.
• The food subsidy has been increased to almost 8,000 crore rupees.

The Budget session of Tamil Nadu began today, August 13, and is going to go on till September 21. On the other hand, Tamil Nadu is set to formulate a State Education Policy. Finance Minister Thiaga Rajan announced during the Budget speech that state will be formulating its own “distinct” state education policy, separate from the National Education Policy 2020 cleared by the Union Cabinet last year.

The state will form a “high level committee” to formulate the policy. The Finance Minister also stated that smart classes will be set up in 25 colleges, adding that Model schools will also be established. In his budget speech, Dr. Palanivel Thiaga Rajan announced that school education will get Rs 32,599.54 crore, a Rs 1,582 crore reduction from the budget estimate announced earlier this year.