Tamil Nadu Budget: DMK government's rescue plan may avoid tax hike

CHENNAI/MADURAI: The first Budget of the DMK government led by Chief Minister MK Stalin, which will be presented on Friday, is likely to spell out strategies to rescue Tamil Nadu from the present financial crisis.

The white paper on the State’s finances and the remarks of Finance Minister Palanivel Thiaga Rajan on the document clearly indicate this.

Also, the Budget may have measures to reduce the debt burden as the State is paying a huge sum as interest towards this every month.

Though a few popular announcements to fulfil key electoral promises of the DMK are expected, fresh taxes are unlikely, going by what the Finance Minister said in Madurai on Thursday.

“In general, taxes have to be increased since the government’s finances are in dire straits. But that does not mean an increase in taxes will be enforced today or tomorrow. I can’t respond to those dreams of others,” Rajan said, answering queries of reporters in Madurai.

After releasing the white paper, the minister dropped enough hints that the revised Budget for 2021-22 would have certain preliminary steps to put the economy back on its rails.

With the first half of the financial year over, the Budget will only cover the rest of the year.