Union Budget: TN CM welcomes many initiatives, Stalin dubs it "illusionary lollipop"

Tamil Nadu Chief Minister KPalaniswami on Monday welcomed several announcements made inthe union budget by Finance Minister Nirmala Sitharaman butsought a review of the cess regime in the interest of states.

DMK president M K Stalin lashed out at the Centre, sayingit has offered an ''illusionary lollipop'' to the people ofpoll-bound Tamil Nadu.

Palaniswami said the budget has many welcome provisions,especially beneficial to the state.

In a statement, he appreciated announcements like theallocation of Rs 35,000 crore for COVID-19 vaccination drive.

The implementation of 3,500 km of national highway work inTamil Nadu will boost the state's economy.

He also gave the thumbs up for the port developmentscheme, proposals in transport sector such as purchase of20,000 new buses and scholarship for Adi Dravida students.

The chief minister requested the Centre to enhance theallocation for Tamil Nadu to fight the pandemic and alsosought funds for the development of small fishing harbours inand two textile parks in the state.

On levying of cess on petroleum products, Palaniswami saidthe state government had already flagged the issue ofdecreasing share of states' excise duty on petrol and diesel.

And the increase in the cess today would ''affect thefinancial condition of states, including Tamil Nadu,'' he said,adding the earlier mechanism should continue.

In the budget, Sitharaman announced an agricultural infracess of Rs 2.5 per litre on petrol and Rs 4 on a litre ofdiesel.

Stalin, also Leader of the Opposition in state assembly,alleged the Centre had 'ignored' Tamil Nadu for the last sixyears and had given an impression in this budgetary exercisethat it was implementing mega schemes for the state.

''Like showing a mirage to a thirsty cow, the Centralgovernment has given an illusionary lollipop to the people ofTamil Nadu with an eye on polls,'' he said in a statement.

He hinted there was no firm commitment on proposals, suchas second phase of Metro Rail and 3,500 km of highway work andsaid the Centre had not paid heed to Palaniswami's earlierpleas for assistance in the wake of cyclones Nivar andBurevi.

He questioned the Centre's announcement on implementingthe Salem-Chennai highway corridor, saying the BJP seemed tosay it was against farmers' welfare even in an election yearin the state.

While there was no announcement on lowering fuelprices, the levy of agri cess would only result in furtherincrease in their rates, he added.

There was no proposal for direct financial assistance topeople who were suffering due to the Covid-triggeredunemployment, Stalin said.

Referring to Sitharaman reading a couplet from Tamilclassic Thirukkural that talks about the features of a goodgovernment which creates wealth and ensures financialprudence, he wondered why she had not taken into account theone on the need of a king who has to be compassionate anddeliver a rule of justice.

NDA constituent PMK said the budget has ''somewhat metexpectations'' about the Centre coming up with new schemes andannouncements to give a fillip to various sectors that weresuffering due to reasons including the covid pandemic.

While proposals in the farm sector such as those onminimum support price would allay fears of farmers, there wasno reduction in income tax, PMK founder Dr S Ramadoss said ina statement.

Various infrastructure related initiatives will boost thegrowth, he added.

MDMK founder Vaiko, a Rajya Sabha member, expressed'disappointment' over the budget, saying it ''showed no signsof'' rebooting the economy.

He opposed disinvestment of select PSUs, saying itwould pave the way for public sector going into the hands ofthe private players.

He also flayed the announcement on implementing theSalem-Chennai eight lane green corridor despite ''publicresistance'' and said certain proposals in highways and railsector had been done with an eye on the assembly polls in thestate, likely in April or May.

AMMK founder and independent MLA TTV Dhinakaran said thebudget had ''some joy and lot of concerns.'' While proposals such as covering one crore morebeneficiaries under the Ujjwala scheme was welcome, ''it isnot proper'' to have announced that the Salem-Chennai corridorwill be implemented ''this year itself,'' he added.