The DMK regime in the state kept up with its pandering just before the election code came into effect in the state on Tuesday evening, following the Election Commission (EC) announcement in Delhi of a one-day poll in Tamil Nadu on April 13.
Striking a conciliatory note towards his alliance partners, Karunanidhi praised Pranab Mukherjee’s budget as “growth oriented” and catering to development needs of a wide section of the people.” On Tuesday morning, Karunanidhi went a step further, promptly slashing State Sales Tax (ST) on petrol from 30 per cent to 27 per cent which would help motor vehicle users save up to Rs 1.38 per litre, despite causing the state exchequer Rs 210 crore. The government did not consider ST reduction even when it presented the interim budget for 2011-12 in the last Assembly session. But in the growing heat of uncertainty, Karunanidhi has chosen to extend an olive branch to the widest section of voters in the state with the hope that it would turn the tide in the alliance’s favour. “TN’s sales tax on petrol is the lowest among all the Southern States,” he said.
With stalemate existing over seat-sharing between the allies-due to Congress demands of a pre-poll commitment on a coalition government and a substantial increase in the number of seats, sources say that Karunanidhi’s budget concessions may help defuse the looming crises within the coalition.
The relatively smooth seat sharing agreement with small parties, the latest being the Dalit outfit Viduthalai Chiruthaikal Katchi, has been seen as a signal to the Congress to be flexible on the seat sharing agreement.
Response from the Congress though remains unclear.