Kerala State Budget 2017-18 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Kerala FY 2017-18
Kerala State Budget 2017-18 Budget at a Glance
Total Receipts
Rs 82,800 crore
+13.1%
Total Expenditure
Rs 1.11 lakh crore
+13.3%
Fiscal Deficit
3.3%
Rs 19,200 crore
Capital Expenditure
Rs 11,200 crore
+14.3%
Tax Revenue
Rs 48,200 crore
+13.4%
Interest Payments
Rs 14,400 crore
13% of expenditure
Kerala Revenue Receipts 2017-18
Own tax revenue vs non-tax revenue breakdown
Kerala Expenditure Breakdown 2017-18
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Kerala 2017-18
The fiscal deficit for Kerala in 2017-18 is 3.3% of GSDP (Rs 19,200 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Kerala is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 14,400 crore consume 12.9% of total expenditure.
Kerala State Budget 2017-18 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 1.17 lakh crore | 100% |
| 1. Revenue Receipts | Rs 82,800 crore | 70.9% |
| a. Own Tax Revenue | Rs 48,200 crore | 41.3% |
| b. Non-Tax Revenue | Rs 6,100 crore | 5.2% |
| B. Total Expenditure | Rs 1.11 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 1 lakh crore | 89.9% |
| 2. Capital Expenditure | Rs 11,200 crore | 10.1% |
| of which: Interest Payments | Rs 14,400 crore | 12.9% |
| C. Fiscal Deficit | Rs 19,200 crore | 3.3% of GSDP |
Source: Kerala State Budget Documents via PRS India. All figures in Indian Rupees.
Kerala Budget 2017-18 Analysis & Highlights
Key Highlights
- Revenue receipts grew to Rs 82,800 crore as GST stabilisation and consumption recovery drove own tax revenue to Rs 48,200 crore.
- First full year of GST implementation caused initial revenue disruption before collections stabilised in the second half.
- Fiscal deficit at 3.3% of GSDP reflected continued expansion as KIIFB-funded projects entered implementation phase.
- Total expenditure reached Rs 1,11,400 crore with revenue expenditure at Rs 1,00,200 crore dominating the spending profile.
- KIIFB mobilised Rs 5,000 crore through masala bonds listed on the London Stock Exchange, attracting international attention.
- The Kochi Metro Phase 1 commenced operations in June 2017, Kerala's first metro rail becoming operational.
- Healthcare spending expanded the Aardram Mission to cover 170 family health centres with extended hours and specialist services.
- Pension expenditure for government retirees and social security combined exceeded Rs 22,000 crore.
- IT sector employment reached 120,000 across state technology parks with exports exceeding Rs 13,000 crore.
- Market borrowings of Rs 23,500 crore continued the elevated borrowing trajectory to finance revenue deficits.
- Ockhi cyclone in November 2017 devastated coastal fishing communities, requiring emergency relief allocation of Rs 800 crore.
- Interest payments at Rs 14,400 crore grew 15%, faster than revenue growth, intensifying fiscal pressure.
- The K-FON (Kerala Fibre Optic Network) project received planning allocation for universal internet connectivity.
- Total outstanding debt reached Rs 1,88,000 crore with debt-to-GSDP ratio rising to 32.4%.
Compare Kerala Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2013-14 | 2014-15 | 2015-16 | 2016-17 | 2017-18 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 98,300 crore | Rs 1.11 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 73,200 crore | Rs 82,800 crore |
| Capital Expenditure | โ | โ | โ | Rs 9,800 crore | Rs 11,200 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.2% | 3.3% |
| Own Tax Revenue | โ | โ | โ | Rs 42,500 crore | Rs 48,200 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Kerala State Budget 2017-18
The Kerala state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Kerala Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
Explore More
Compare Kerala with other states
Side-by-side comparison of fiscal metrics across Indian states