97. Tamil Nadu has made remarkable strides in making available accessible and quality health facilities to the people. This is reflected in improvements in core health indicators. The Infant Mortality Rate (IMR), which was 51 per thousand live births in 2000, has come down to 44 per thousand live births in 2002. Similarly, the Crude Birth Rate (CBR), which was 19.3 per thousand population is down to 18.5 per thousand population in the same period.

98. Since this Government assumed office, 746 Health Sub-Centres have been provided with new buildings and 93 Primary Health Centres have been upgraded to 30-bed hospitals at a total cost of Rs. 86.25 crores. Seven Regional Diagnostic Centres with facilities such as MRI, CT Scan, ECG, EEG, ultrasound and X-Ray are being established at a cost of Rs. 21 crores. Special focus has been given towards reducing casualties in road accidents and 73 Accident and Trauma Service Units have been established across the State.

99. A total of 571 Speciality Health Camps benefiting 11.38 lakh people have been organized to take quality medical services to the doorsteps of the people at a cost of Rs. 9.34 crores. The School Health Camp Programme has been implemented in 2003-2004 to cover 56.65 lakh students.

100. In a determined bid to reduce the Maternal Mortality Rate (MMR), which has remained at 1.3 per thousand live births, this Government proposes to operationalize 24-hour Comprehensive Emergency Obstetric Care, including caesarean services, in at least two health institutions in every district. To reduce the Infant Mortality Rate further, these institutions will also provide Comprehensive Emergency New Born Care round the clock.

101. We have made good progress in developing a Health Systems Development Project to be supported by the World Bank. This Rs. 500 crore project will be started in 2004-2005. The primary health care infrastructure in Tamil Nadu will be considerably strengthened once the externally aided Reproductive Child Health Project is taken up for implementation at a total outlay of Rs. 300 crores over 5 years.

102. We welcome the announcement by the Union Government to upgrade one medical college in Tamil Nadu to the level of the New Delhi based All India Institute of Medical Sciences under the Pradhan Mantri Swasthya Suraksha Yojana. The outlay under Health and Family Welfare has been increased from Rs. 1304.31 crores in the Revised Estimates of the current year to Rs. 1387.77 crores in the Budget Estimates.

103. The personal example of the Hon'ble Chief Minister has been the inspiration for lakhs and lakhs of women in the State. Women's empowerment in Tamil Nadu is a reality thanks to the shining example of the Hon'ble Chief Minister. This new dynamism has spread to every nook and corner of the State. Women who were denied opportunities earlier are now marching ahead in every walk of life.

104. Tamil Nadu is one of the very few States in the country, which has taken steps to ensure 33% representation of women in all statutory and non-statutory Committees of the Government. Top posts such as Chairperson of the Tamil Nadu Public Service Commission and Chief Secretary of the Government of Tamil Nadu are held by women. The constitution of an All Women Commando Force and the raising of the First Women Police Battalion have further established that women can not only participate on an equal footing with men but also do better.

105. The Self-Help Group movement, which was launched by the Hon'ble Chief Minister in 1992, has grown rapidly and become a massive movement for empowerment of women. We have provided Rs. 20 crores for the Mahalir Thittam in the Budget Estimates 2004-2005. This will enable taking up training programmes, entrepreneurship development programme and the formation of new groups. We hope to form 25,000 new self-help groups in 2004-2005 covering an additional 5 lakh women.

106. The coverage and quality of food under the comprehensive supplementary nutrition programmes has been considerably enhanced because of the concerted action of this Government. Totally 77 lakh children are benefited under this programme. This Government has taken special efforts to sanction pay arrears to noon-meal staff as assured by the Hon'ble Chief Minister. The total provision for the nutritious noon meal programme in 2004-2005 is Rs.685.41 crores.

107. This Government’s strategy to empower people belonging to the Scheduled Caste and Scheduled Tribe Communities by enabling access to quality education, credit, training for self employment and houses has been very well received. The process of development planning for the advancement of members of the Scheduled Castes and Scheduled Tribe communities has been decentralized. Under the Poverty Alleviation Action Plan, nearly 1.43 lakh people have been given assistance to the tune of Rs. 65.99 crores. A new scheme to provide land to the landless has just been launched to benefit 7000 landless women members of these communities with a total outlay of Rs. 70 crores.

108. Members of the House may note that 100 new hostels at a cost of Rs.31.50 crores will be built in 2004-2005. The Budget includes a provision of Rs.8 crores for the scheme of providing free bicycles to Scheduled Caste and Scheduled Tribe, and Scheduled Caste Convert girls in Standard XI. The total outlay for the Welfare of Scheduled Castes and Scheduled Tribes goes up from Rs. 429.09 crores in the Revised Estimates of the current year to Rs. 448.91 crores in 2004-2005.

109. The outlay for the welfare of people belonging to these communities has been enhanced to Rs. 159.79 crores in 2004-2005. This Government will continue its efforts to facilitate socio-economic and educational empowerment of the people from these communities.

110. 100 new hostel buildings will be built at a cost of Rs.31.50 crores in 2004-2005. An amount of Rs. 4.25 crores is being earmarked to enable free education in professional courses to children belonging to these communities. The scheme for providing incentives to girls belonging to these communities will be continued with a provision of Rs. 6 crores. An amount of Rs. 2.25 crores is being earmarked to provide house sites and other infrastructure facilities to the members of these communities living below the poverty line.

111. The Revised Estimates for the year 2003-2004 have been placed before this August House. We have been able to keep the revenue deficit in the Revised Estimates of the current year at Rs.3699.51 crores as against Rs.3933.47 crores in the Budget Estimates 2003-2004. The overall deficit has also been reduced in the Revised Estimates of the current year to Rs.245.52 crores, from Rs.1295.15 crores in the Budget Estimates 2003-2004 . The total revenue receipts in Revised Estimates 2003-2004 is Rs.22,850.53 crores as against Rs.22,665.90 crores in the Budget Estimates 2003-2004. The overall revenue expenditure in the Revised Estimates 2003-2004 is Rs.26,550.04 crores as against Rs.26,599.37 crores in the Budget Estimates 2003-2004.

112. The revenue deficit in the Revised Estimates in the current year has been kept below the Budget Estimates. We can legitimately take pride in the fact that from the chaotic condition that we inherited when we assumed office, we have brought order to the situation today. The ways and means position of the Government has improved and bills presented are being honoured immediately. All these have taken extraordinary effort and Members of the House will appreciate the significant achievement of the Hon'ble Chief Minister, Puratchi Thalaivi J Jayalalithaa in restoring fiscal balance in Tamil Nadu.

113. The Budget Estimates for 2004-2005 are before this House. The total revenue expenditure of the Government in 2004-2005 is projected at Rs.28,128.73 crores as against the receipts of Rs.24,792.30 crores, leaving a deficit in the revenue account of Rs.3336.43 crores. The revenue deficit still constitutes 13.5% of the total revenue receipts. The overall deficit at the end of 2004-2005 is estimated at Rs.590.47 crores. The fiscal deficit of the Government for the year 2004-2005 is estimated to be Rs.6921.77 crores. The policy of fiscal consolidation will be continued in 2004-2005 by further enhancing revenues through better compliance and by controlling non-productive expenditure.

114. The seasonal conditions have been adverse in three successive years leading to the drought in 2002-2003. While the overall Monsoon in 2003 has been better, the North East Monsoon has again failed in 2003. Ground water levels have also gone down. The Hon'ble Chief Minister has announced, on 10th February, 2004, that the land revenue payable by the farmers for Fasli 1413, that is, from July 2003 to June 2004, will be completely waived in all districts. In addition, the Local Cess and Local Cess Surcharge will also be waived. This has been done to provide relief to all farmers. The loss of revenue on account of this support extended to farmers is estimated at Rs. 60 crores.

115. Over the last few years, the plantation industry has been continuously incurring losses due to falling prices and increasing production costs. Consequently, the Agricultural Income Tax, which contributed Rs.39.40 crores to the State Exchequer in 1997-1998, dropped to Rs.1.6 crores in 2002-2003. In 2003-2004, the estimated tax yield is Rs.1.35 crores, while the expenditure on the tax collection machinery is Rs.1.6 crores. Thus, the collection costs now exceed the tax yield.

116. Taking into consideration the need to revive the plantation industry, giving the tea growers better prices and taking stock of the fact that collection costs now exceed the collections, the Government has decided to abolish the Agricultural Income Tax with effect from 1^st April 2004.

117. At present, if any Sales tax payment is in default, an interest on the tax amount due at 2% per month, that is, at an annual rate of 24% is being levied. This rate was fixed at a time when interest rates were very high. Since interest rates have come down, it is proposed to change the interest rate to a new pattern which shall be 1.5% per month on the tax amount due for the first 90 days and 2% per month thereafter. This will enable prompt payment. Necessary amendment will be made to the TNGST Act 1959 to give effect to this change.

118. Wet Dates are taxed at 12%. Generally food products are classified under the 4% rate schedule. Other items, which are in the 4% slab are milk powder, sweets, confectionery, pickles, chocolates etc. It is therefore proposed to bring the sales tax rate on wet dates down to 4% as it is a food product.

119. The Sales Tax rate for computer peripherals and spares is 4% and the Central Sales Tax rate is also at 4%. As part of our plan to establish Tamil Nadu as a hardware base, the rate under CST will be reduced from 4% to 2%.

120. A problem has arisen because of the amendment to the Central Sales Tax Act in 2002, which has made filing of 'C' form mandatory. Under this, if sales are made to unregistered dealers, C.S.T. at 10% has to be compulsorily collected. This has caused problems to the hosiery industry in Tamil Nadu which despatches goods to small buyers up country. The Hon'ble Chief Minister has also addressed the Union Finance Minister to find a solution. As this requirement is now statutory, we have decided to introduce a scheme by which tax will be collected at 10% and 9% will be refunded on inter-state sales of hosiery products as a specific industrial incentive so that the effective rate will be 1%. This will be subject to the condition that there will be no branch or consignment transfer of Hosiery goods by the dealer in a year.

121. Life Saving drugs have already been exempted from tax. It is proposed to include Continuous Ambulatory Peritoneal Dialysis (CAPD) fluids used for treatment in renal failure cases in the list of life saving drugs and exempt it from tax. The following 10 drugs are used for the treatment of AIDS patients.

We will include these drugs in the list of life saving drugs and exempt them from Sales Tax.

122. Natural gas is produced in Tamil Nadu from gas wells by ONGC, which is a Government of India organisation and then sold to Gas Authority of India Limited (GAIL), which is also a Government of India organisation for marketing. As per the current practice, the gas will suffer tax at the first sale that is between the ONGC and GAIL at 8% and then between GAIL and TNEB at the second sale at 1%. The TNEB is, however, specifically entitled to pay tax at 4% on all its purchases. However, in the case of Natural Gas, this is not possible as TNEB pays tax only at the second point as gas has already suffered tax at the first point at 8%. It is therefore proposed to allow a reduced rate of tax of 4% on the sale made by ONGC to GAIL for supply to TNEB alone. Further, the resale tax payable by GAIL on the sales to TNEB will be exempted. This will be applicable to sales to TNEB only.

123. In order to provide an incentive to install pollution control equipment, it is proposed to rationalise the tax rate on equipment used for Pollution Control measures and bring them to a common rate of 4%. The list of such items obtained from the Pollution Control Board will be modified separately..

124. As an incentive to artisans producing handicrafts, it is proposed to reduce the rate of tax on handicraft articles from 4% to 2%.

125. As a gesture to artistes, I propose to fully exempt the tax on Indian Musical Instruments. The present rate of tax is 4%.

126. At present, poultry feed is exempted from tax. Limestone is mixed in a very small proportion in the manufacture of poultry feed. Limestone is charged at 12%. The tax on limestone used in the manufacture of poultry feed will be reduced from 12% to 4%.

127. Resale tax at 1% is being levied on sales of consumer goods effected by co-operatives. In order to benefit consumers who make purchases of consumer goods from co-operatives, exemption will be granted to the co-operative stores functioning under the control of Registrar of Co-operative Societies, which are dealing in purchase and sale of consumer goods from the resale tax under section 17 of the TNGST Act. 1959.

128. All the changes that I have proposed except those requiring amendments to the Acts will take effect from the date of notification.