The state hopes to cover the budget deficit by additional resource mobilisation. One of the contemplated measures is the introduction of a scheme similar to the `Samadhan' scheme implemented by the Centre to ensure speedy collection of a large part of commercial tax arrears. The commercial tax department has estimated that over Rs 700 crore is in arrears in the state. Up to February 1999 the state had collected Rs 130 crore against Rs 43 crore in the last financial year. The details of the state government plans are yet to beannounced.

Another major source of funds is the proposal for export of sandalwood through state government agencies. ``If the Centre permits it at least Rs 300 crore can be earned by exporting 1500 tonnes a year, the finance secretary said.

The state has decided to grant the unutilised granite leases with Tamilnadu Minerals Ltd (Tamin) through open auction to firms capable of exploiting the resources. The state has not set any target of revenue from signorage fees for this.

A large number of undervalued documents are held in litigations. A new scheme introduced on March 1, 1999 to settle at 50 per cent of the disputed amount has found to be effective and it would continue to add to the state revenue. The state has asked the Centre to increase royalty on lignite as it is a substantial source of revenue.

Rajaraman said the state GDP was around Rs 10,000 crore forming almost 10 per cent of the national GDP. During last year the agriculture sector grew by over 5 per cent, manufacturing sector by 5 percent and services sector by nine per cent.

The industry associations and chambers of commerce and industry, have welcomed the budget for its bold intitiatives on several fronts including ST rationalisation.