Budget 2012: Liquor, vegetable oil to cost more in Tamil Nadu

The Jayalalithaa government in Tamil Nadu on Monday presented a budget of the size of Rs1.20 lakh crore for 2012-13, levying taxes on liquor and vegetable oil and rationalising tax rates to mop up Rs1,500 crore revenue.

Presenting the Budget in the assembly, Finance Minister O Panneerselvam announced tax exemption for wheat, oats, insulin, helmets and a duty cut on CFL bulbs, splints and veneers and sanitary napkins and diapers.

The budget is also expected to bring cheers to government employees as Panneerselvam announced hike in the housing loan extended to them from Rs15 lakh to Rs25 lakh and earmarked Rs247 crore for this purpose.

As part of efforts to extend the welfare measures of Chief Minister J Jayalalithaa, the budget also proposed to waive interest to those farmers who repay their crop loan promptly, and distribute milch cows to 12,000 beneficiaries and four goats/sheep to another 1.5 lakh persons.

According to Finance Secretary K Shanmugham, the state's total budget size is Rs 1,20,422 lakh crore compared to the revised estimate of Rs 1,02,149 lakh crore.

The government sounded confident of attracting Rs 20,000 crore investment in the next six months with Panneerselvam stating that approvals of investment from companies including two-wheeler maker Yamaha, mobile phone manufacturer Nokia, glass maker Saint-Gobain among others were in "advanced stage."