Kerala’s economy recorded “steady growth” in 2022-23 with the Gross State Domestic Product (GSDP) clocking 6.6% growth at constant prices, according to the Economic Review tabled in the Kerala Assembly on February 2 (Friday).
Compared to 2021-22 when Kerala recorded the highest growth in a decade in a post-COVID-19 recovery spurt, the growth rate appears to have settled in 2022-23. The GSDP had clocked 12.97% growth in 2021-22. But the two years cannot be realistically compared, senior Planning Board officials said. This is because the higher growth rate in 2021-22 was from a pandemic-induced, low base of -8.43% negative growth the previous year.
In 2022-23, Kerala’s economy posted positive growth for the second consecutive year after the pandemic. The Economic Review noted that this has been achieved in the face of “financial constraints and adversities.”
Per capita income in Kerala has risen by 6.06% to ₹1,74,214 compared to ₹ 1,64,261 in 2021-22, according to the Economic Review tabled in the House by Finance Minister K. N. Balagopal.
Sector-wise, the primary sector at current prices grew by 4.96% compared to 6.91% the previous year, the secondary sector by 14.19% compared to 20.79%, and the tertiary sector, 11.53% against 24.08% the previous year.
The Economic Review observed that in 2021-22, Kerala registered a relatively higher growth rate in GSDP on account of the post-pandemic recovery trend which was propped up by stimulus packages.
Fiscal deficit reduced to 2.44% and revenue deficit, to 0.88% of the GSDP.
Own revenue up, Central transfers down
The total revenue receipts of the State rose by 13.79% to ₹1,32,724.65 crore in nominal terms. Of this, the State’s Own Tax Revenue accounted for 54.22% (₹71,968.16 crore), and the State’s Own Non-Tax Revenue, 11.39% (₹14,117.96 crore). The share of Central taxes and grants was ₹45,638.54 crore (34.39%).
The Economic Review observed that a series of Union government policies has resulted in a drastic decline in Central transfers to Kerala. “Today, the State economy faces unprecedented financial difficulties because of unfairness and inequality in Centre-State financial relations, and failure by the Government of India to implement policies of genuine federalism,” it said.
Revenue expenditure down
Revenue expenditure decreased to ₹1,41,950.94 crore in 2022-23, compared to ₹1,46,179.51 crore the previous year. The ratio of revenue expenditure to GSDP dipped to 13.57% from 15.64%.
Public debt
The outstanding public debt of the State has been pegged at ₹2,38,000.96 crore, and the growth rate of public debt is down to 8.19%. The publicdDebt-GSDP ratio also decreased from 23.54% 2021-22 to 22.75% in 2022-23.
KIIFB projects
As on March 31, 2023, the Kerala Infrastructure Investment Fund Board (KIIFB) has completed projects worth ₹3,389.89 crore, according to the Economic Review.
Out of 1,050 approved projects, 604 projects have been tendered and 553 projects have been awarded or started. In 2022-23, the KIIFB released ₹ 4,673.28 crore for funding infrastructure projects and land acquisition.
