Chennai: Several concessions in sales tax and stamp duty, abolition of agriculture income tax, waiver of land revenue, including local cess, are some of the highlights of the populist and 'tax-free' Budget for 2004-05, presented to the Tamil Nadu Assembly today (Feb 11, 2004).

Almost the entire Opposition including the DMK (Dravida Munnetra Kazhagam), PMK (Pattali Makkal Katchi), Congress, CPI (Communist Party of India) and the CPM (Communist Party of India-Marxist) members had boycotted the Budget presentation and only the ruling AIADMK (All India Anna Dravida Munnetra Kazhagam), BJP (Bharatiya Janata Party) and a couple of rebel PMK members were present when Finance Minister C Ponnaiyan presented the full-fledged Budget, leaving an uncovered deficit of Rs 590.47 crore, probably keeping in mind the coming Lok Sabha polls.

Presenting his fourth successive Budget, Ponnaiyan said the Government would tackle the deficit by proper cash management and greater resource flow from the Centre.

He announced various concessions like waiver of land tax and reductions in sales tax and stamp duty, totalling Rs 140 crore. 'This will be bridged by stepping up collection of revenue arrears and control of non-productive expenditure', the Minister said, a point later echoed by the Finance Secretary, N Narayanan, at a press conference.

In an informal chat with reporters after the two-hour Budget presentation, the first in the history of the Assembly to be done in the afternoon, Chief Minister, Jayalalitha described it as 'people-oriented' and hoped to cover the deficit by 'better revenue realisation'.