TN Budget: Hut-free mission aims at 800,000 concrete houses by 2030

The scheme called Kalaignarin Kanavu Illam will be implemented at a cost of Rs 3,500 crore, giving an opportunity to the poor to build their dream homes

The Government of Tamil Nadu, in its Budget on Monday, announced a mission for a ‘Hut-free Tamil Nadu’ by 2030, targeting 800,000 concrete houses across rural Tamil Nadu as part of the mission. The scheme called Kalaignarin Kanavu Illam — a housing scheme named after the late Dravida Munnetra Kazhagam patriarch and former chief minister M Karunanidhi — will be implemented for Rs 3,500 crore, providing an opportunity for the poor to build their dream homes.

“In the first phase, 100,000 new houses will be built at a unit cost of Rs 3.5 lakh per house in the coming year,” said Finance Minister Thangam Thennarasu, presenting the Budget.

 

Tamil Nadu Chief Minister M K Stalin on Monday hailed the state Budget as one that was prepared based on ‘justice, social justice’ that provided equal justice and fair allocation of funds to all sections of the people.

Outlining the ‘7 grand Tamil dream’ which includes social justice and women’s welfare under the Dravidian model’s ‘everything for everyone’ scheme, Stalin said the Budget includes every single aspect for development and growth.

For 2024-25 (FY25), the revenue deficit was estimated at Rs 49,279 crore, compared with Revised Estimates (RE) for 2023-24 (FY24) of Rs 44,907 crore.

In the Budget, the fiscal deficit is estimated at Rs 1.08 trillion, which is 3.44 per cent of gross state domestic product, down from 3.46 per cent in 2022-23 and 3.45 per cent in FY24.

In Budget Estimates (BE), the capital expenditure is estimated at Rs 47,681 crore, representing a growth of 12.11 per cent over RE FY24. In BE FY25, the total revenue expenditure is estimated at Rs 3.48 trillion, compared to Rs 3.17 trillion in the RE of FY24.

The state’s own tax revenue was estimated at Rs 1.95 trillion in FY25, posting a growth of 15 per cent over RE of FY24.

“As the goods and services tax compensation dues will completely end from the coming year, there is a reduction in grants-in-aid in BE FY25, compared to RE FY24. The grants-in-aid are estimated to be Rs 23,354 crore. Based on the allocation made in the Union Budget FY25, the estimates fixed for share in central taxes for FY25 are Rs 49,755 crore,” he added.

Three new industrial estates dedicated to micro, small, and medium enterprises will be established in Oddanchatram, Manamadurai, and Thiruthuraipoondi. This is likely to create job opportunities for more than 3,000 people.

He also announced that Chennai will host a global startup summit in January 2025, bringing in startups from across the world under one platform.

In an interesting move, the state will be launching the ‘Tamil Nadu Artificial Intelligence (AI) Mission’ to develop guidelines for constructively leveraging AI in education, employment, industry, research, and medicine, and to establish clear protocols for its utilisation.

“The construction of 14 bypasses and high-level flyovers with a project budget of Rs 665 crore, acquiring 3,000 additional buses, alongside an expansion of the existing minibus scheme, and a commitment to constructing 100,000 concrete houses in FY25 are all good initiatives that would serve to accelerate the infrastructure sector in the state,” said V N Shiva Shankar, vice-president of the Southern India Chamber of Commerce and Industry.

Tamil Nadu’s main Opposition All India Anna Dravida Munnetra Kazhagam on Monday dubbed the state budget as mere “jugglery of words” and the Bharatiya Janata Party claimed there is “nothing new” in the budget.