Kerala’s Tax, Non-Tax Revenues Surge In 2023-24, Grants-In-Aid Decline Drastically, Says Report

Kerala's total revenue receipts fell by 6.21 per cent in 2023-24 over last previous fiscal year, as per data by the Accountant General (Accounts and Entitlements) tabled in Assembly released on January 21, 2025, the Hindu reported. The annual growth in the Gross State Domestic Product (GSDP) of Kerala for the 2023-24 financial year was 11.97 per cent, the Hindu report added.

Outlook Money could not independently verify this news development.

Meanwhile, the State’s own tax and non-tax revenues have surged. 

The outstanding public debt of Kerala by the end of 2023-24 stood at Rs 2,82,495.30 crore, consisting of internal debt of Rs 2,57,157.92 crore, loans and advances from the Centre stood at Rs 25,337.38 crore, the ‘Accounts at a Glance’ report for the 2023-24 financial year added.

According to the estimates for 2023-24, the report recorded a 6.47 per cent increase in Kerala’s tax revenues and an  8.12 per cent rise in non-tax revenues over the previous financial year. The grants-in-aid that represent assistance from the centre and comprise grants for Centrally sponsored schemes, grants recommended by the Finance Commission and other grants declined by 55 per cent, over the previous financial year.

Additionally, the tax revenues increased by Rs 5,843.09 crore, from Rs 90,228.84 crore in 2022-23 to Rs 96,071.93 crore, in 2023-24, as per the report.

Non-tax revenues surged from Rs 15,117.95 crore to Rs 16,345.96 crore. Meanwhile, grants-in-aid declines from Rs 27,377.86 crore to Rs 12,068.26 crore. The total revenue receipts declined from Rs 1,32,724.65 crore in 2022-23 to Rs 1,24,486.15 crore in 2023-24.

Out of the Rs 96,071.93 crore tax revenue, the State’s Own Tax Revenue (SOTR) stood at Rs 74,329.01 crore, the report noted.

SOTR in 2023-24 was a little over by ₹2,360.85 crore compared to 2022-23.

Decreasing trend

After increasing from Rs 11,235.26 crore in 2019-20 to Rs 31,068.28 crore in 2020-21, grants-in-aid have reflected a decreasing trend in recent years. It fell to Rs 30,017.12 crore in 2021-22, and Rs 27,377.86 crore in 2022-23 before falling to Rs 12,068.26 crore now.

The report also noted that 73.36 per cent of the revenue receipts of the State government were used on committed expenses such as salaries, interest payments and pensions.