The announcement of the Budget for the year 2024–25 by Tamil Nadu Finance Minister Thangam Thennarasu on Monday, although welcomed by trade bodies, was also criticised for leaving out some of their important demands.
Tamil Nadu Chamber of Commerce and Industry has appreciated some of the projects such as industrial innovation centre in Madurai, setting up of free wi-fi in five cities, including Madurai, at a cost of ₹200 crore, Tidel park in Madurai at a cost of ₹350 crore on an area of 6,40,000 sq. ft, new textile park in Virudhunagar and Salem worth ₹2,483 crore, a textile park at Virudhunagar, ₹2,795 crores allocation for MSME under industrial investment promotion and ₹1,577 crore financial assistance for MSMEs.
Also, they welcomed the announcement on rope car facility in Tirupparakaundram in Madurai.
Not allocating fund for the Tamil Nadu government’s share of 20% to the estimated project cost of ₹1,700 for the metro rail project proposed for the district to ease traffic congestion in the city and no fund announcement for the conversion of Madurai central jail were disappointing, said N. Jegatheesan, President, Tamil Nadu Chamber of Commerce and Industry.
In addition to this, the trade body expressed its disappointment over non-allocation of funds for the underpass project at phase I to extend the runway of the Madurai airport. Also, they said, there was no announcement for the construction of a trade and convention centre in Madurai, which was a long-pending demand for the development of trade and industries in southern Tamil Nadu.
Tamil Nadu Food Grains Merchants Association Limited president S.V.S.S. Velshankar in the statement mentioned the announcements by the government as benefitting and also noted several requests of the Madurai people which the government had failed to take note of.
Some of the important points the statement noted were to urge the Central government to execute the Madurai, Coimbatore metro rail projects which were already sanctioned and the failure of the Tamil Nadu Electricity Board to manage the funds efficiently as the board despite increasing the electricity tariff multi fold faced a shortage of ₹9,428 crore.
Further, there was no mention of the removal of peak hours charges for the micro and small-scale establishments. “No funds are allocated for the proposed flyover near AV bridge to Villapuram in Madurai,” Mr. Velshankar added.
S. Rethinavelu, President of the Agro Food Chamber of Commerce and Industry in the statement on the budget has opined that as the southern part of Tamil Nadu does not have a vibrant industrial presence when compared to the northern districts, its stronghold was tourism, but the budget missed out announcements for the development of the sector, through which the districts benefit considerably.
The statement also stated that they were disappointed that the State government left out the southern districts in the budget despite being aware that it had already failed to attract its due share of investment for the development of the southern part in the recent Global Investors’ Meet.
Madurai District Tiny and Small-Scale Industries Association (MADITSIA) welcomed the announcements like SIDCO Industrial Parks in Dindigul, Sivaganga and Tiruvarur, TIDEL park in Madurai at a cost of ₹345 crore, among others.
The budget did not have any mention of the previous announcements like TIDEL park in Madurai at a cost of ₹600 crore and the expansion of Melur SIPCOT industrial estate, Lakshminarayanan, President, MADITSSIA, said.
In addition to this, some of their demands were upgradation of Madurai airport to international airport and disbursal of industrial loan at low interests.
C. Muthuraja, Head, Postgraduate and Research Department of Economics, The American College, Madurai, said that despite the financial problems the State faced, the budget was smooth and steady, and the announced budget was an effort to overcome barriers for a more sustainable development.
“There are three main economic problems in the Tamil Nadu economy today - troubled central-state fiscal-revenue relationship, high debt burden and rising budget deficit. In this context, this year’s budget is based on global key economic mechanisms like social justice for all, welfare for all, women’s welfare and green economy,” he added.
