Tamil Nadu has touched new heights in offering freebies to public, offering interest-free crop loans to farmers under a new scheme and cutting land revenue to its lowest level.

In yet another populist decision, the state government waived interest on all crop loans given by cooperative sector banks. The cooperative banks have already cut interest rate on such loans. The move is aimed to woo farm community, a significant vote bank of DMK, in the wake of forthcoming parliament elections.

Mr. K. Anbazhagan, state finance minister, while presenting the Tamil Nadu Budget for 2009-10, said, "As yet another example of our concern towards the farmers, for the first time in our Country, this (DMK) Government has decided not to charge interest on cooperative loans hereafter to all farmers who repay their crop loans on time from the ensuing financial year."

The minister, in the absence of opposition AIADMK, said that government has set apart funds worth Rs 140 Crore and Rs 2000 crore in the Budget for new scheme and fresh loan disbursement.

Meanwhile, simplifying the highly cumbersome land revenue system, the government announced to terminate 'local cess' and 'local cess surcharge', benefiting around 50 lakh peasants of state.

State Finance Secretary, Mr. K. Gnanadesikan, said, "We have made a historic breakthrough, even if it meant fall in revenue."