Chennai, Aug. 18 :    Chennai, Aug. 18:  The DMK today boycotted the first budget presentation of the ADMK government amid noisy protests against 'police excesses' even as finance minister C. Ponnaiyan imposed fresh taxes to the tune of Rs 135.38 crore, leaving behind a deficit of Rs 692 crore for the year 2001-02. The Tamil Nadu government also decided to ban the use of chewing tobacco, pan masala and gutka products because of increasing cases of mouth cancer. The decision comes close on the heels of chief minister Jayalalitha's announcement that smoking will be banned in public places. The Assembly standoff between the ruling party and the main Opposition came as no surprise. The DMK is still seething over M. Karunanidhi's arrest and the recent police firing on party rallyists has exacerbated matters. DMK leader in the House K. Anbazhagan set the tone even before the budget was unveiled. After a hard-hitting speech against the government, he walked out in protest. Speaker K. Kalimuthu, however, ruled that nothing of what the DMK leader had said would go on record. The rest of the DMK MLAs were immediately on their feet, screaming slogans and holding up proceedings for nearly three minutes before walking out. They were joined by BJP, Dalit Panthers and MGR-ADMK members. Jayalalitha sat nonchalantly through the din. She said the DMK's boycott did not surprise her. Anbazhagan later said his party had vented its resentment against the ADMK regime for unleashing repression on Opposition parties, particularly the DMK. He alleged that during the August 12 rally in Chennai, 'police and goons had jointly attacked' his party rallyists who were taking out a peaceful procession. Even the media was not spared, he said. Ponnaiyan painted a grim picture of the state's finances, which he said was marked by an 'unprecedented deterioration'. He said the cash reserve of Rs 874 crore that the earlier ADMK government had left behind in 1996-97, now stood 'completely depleted'. Even for day-to-day expenses, the government has to avail short-term loans and overdrafts from the Reserve Bank, he said. Ponnaiyan presented a 'White Paper on Tamil Nadu Government Finances' along with the budget. He warned of a 'debt-trap' if corrective measures were not taken and said the previous government had failed to clear bills and other expenditure liabilities of about Rs 700 crore. In a deft balancing act, he raised sales tax on cellphones, two-wheelers, electrical goods, plastics and imposed a 20 per cent entertainment tax on recreational parlours. To give a boost to the information technology sector, he said the MGR Film City in Chennai would be transformed into the MGR Knowledge City to serve as a platform for promoting latest developments in science and technology.