THIRUVANANTHAPURAM: The annual report of the Comptroller and Auditor General stated that the financial security of the state was shattered in 2020-21. He also warned that the economy will become more vulnerable if strict financial discipline and rational measures to raise incomes are not taken. The report was tabled in the Assembly yesterday.
According to the state-approved Fiscal Responsibility Act, the revenue shortfall should be in comparison to GDP. However, it is 3.40% higher in Kerala. The budget deficit stood at 5.40%. Public debt represented 39.87% of total revenue. The GDP of the state in the year 2020-21 is Rs 758,941.60 crore.
According to the report, the central aid increased to Rs 31,068.28 crore from Rs 11,388.96 crore and Rs 11,235.26 crore in the previous two years. This has helped bring the state’s total revenue to at least Rs 758,942 crore. At the same time, there has been a huge increase in revenue spending over this period. Revenue expenditure increased from Rs 91,096.31 crore in 2016-17 to Rs 123,446.33 crore in 2020-21.
Government guarantee for various loans increased from Rs 20,204.10 crore in 2016-17 to Rs 49,076.88 crore in 2020-21. Of this, Rs 36600.98 crore remains as liabilities. While the state borrowed Rs 23,857.89 crore in 2016-17, it borrowed Rs 69,735.36 crore in 2020-21.
Lower tax revenue
- Tax revenue, which was Rs 69,682.27 crore in 2018-19 and Rs 66,724.19 crore in 2019-20, was reduced to 59,221.24 crore in 2020-21.
- Revenue from basic service tax including service tax was Rs 45,816.17 crore in 2016-2017. This has been reduced to 24556.86 crores in 2020-2021.
- 2016-17: 189768.55
- 2017-18: 214518.22
- 2018-19: 241614.51
- 2019-20: 265362.36
- 2020-21: 308386.01