The Tamil Nadu budget, presented by state Finance Minister K Anbazhagan on Tuesday, shows a deficit of Rs 11,823.64 crore, chiefly on the back of tax concessions worth Rs 100 crore and interest-free crop loans to be given to farmers who repaid their loans on time from this fiscal.
The government itself would pay interest to co-operatives, he said.
He said land tax for dry land would be reduced to Rs two from the present Rs 15 per acre, and to Rs five from Rs 50 for wet land. This would be done by simplifying the current cumbersome system of fixing the tax, he said.
Local cess and local cess surcharge on land tax would not be levied from the next fiscal, he said. This would benefit over 50 lakh farmers in the state.
Chief Minister M Karunanidhi will soon lay the foundation stone for the Rs 14,600 crore metro rail project for Chennai.
The State will bear Rs 11,680 crore, of which Rs 8,646 crore would come as loan from the Japan International co-operation agency, while the Centre's contribution will be Rs 2,920 crore. Tenders for initial work on the project had been finalised, he said.