Kerala State Budget 2018-19 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Kerala FY 2018-19
Kerala State Budget 2018-19 Budget at a Glance
Total Receipts
Rs 90,500 crore
+9.3%
Total Expenditure
Rs 1.26 lakh crore
+12.8%
Fiscal Deficit
3.4%
Rs 22,800 crore
Capital Expenditure
Rs 13,200 crore
+17.9%
Tax Revenue
Rs 53,200 crore
+10.4%
Interest Payments
Rs 16,600 crore
13% of expenditure
Kerala Revenue Receipts 2018-19
Own tax revenue vs non-tax revenue breakdown
Kerala Expenditure Breakdown 2018-19
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Kerala 2018-19
The fiscal deficit for Kerala in 2018-19 is 3.4% of GSDP (Rs 22,800 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 16,600 crore consume 13.2% of total expenditure.
Kerala State Budget 2018-19 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 1.31 lakh crore | 100% |
| 1. Revenue Receipts | Rs 90,500 crore | 68.8% |
| a. Own Tax Revenue | Rs 53,200 crore | 40.5% |
| b. Non-Tax Revenue | Rs 6,500 crore | 4.9% |
| B. Total Expenditure | Rs 1.26 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 1.13 lakh crore | 89.5% |
| 2. Capital Expenditure | Rs 13,200 crore | 10.5% |
| of which: Interest Payments | Rs 16,600 crore | 13.2% |
| C. Fiscal Deficit | Rs 22,800 crore | 3.4% of GSDP |
Source: Kerala State Budget Documents via PRS India. All figures in Indian Rupees.
Kerala Budget 2018-19 Analysis & Highlights
Key Highlights
- Kerala experienced its worst floods in a century in August 2018, causing over 480 deaths, displacing 1.4 million people, and Rs 40,000 crore in damages.
- Revenue receipts reached Rs 90,500 crore but growth slowed to 9% as flood disruption and GST uncertainty impacted collections.
- Post-flood reconstruction spending pushed total expenditure to Rs 1,25,700 crore, the highest annual spending in state history.
- Fiscal deficit widened to 3.4% of GSDP at Rs 22,800 crore as emergency spending supplemented regular budgetary commitments.
- The Centre denied Kerala's request for national calamity status, forcing the state to finance reconstruction largely from own resources.
- KIIFB accelerated Rs 15,000 crore in project sanctions for flood-damaged infrastructure reconstruction.
- Total outstanding debt surged to Rs 2,15,000 crore with debt-to-GSDP ratio at 32.3%, reflecting emergency borrowing.
- Healthcare system demonstrated extraordinary resilience during floods with zero epidemic outbreaks despite mass displacement.
- Rubber and spice plantations in Idukki and Wayanad suffered Rs 5,000 crore in flood damage with massive landslide losses.
- Tourism sector lost Rs 2,500 crore in revenue as monsoon and post-monsoon seasons were severely disrupted.
- Interest payments at Rs 16,600 crore consumed 18% of revenue receipts, crowding out developmental spending.
- The Nipah virus outbreak in Kozhikode in May 2018 preceded the floods, testing the state's public health response capacity.
- Capital expenditure reached Rs 13,200 crore including flood reconstruction and Kochi Metro Phase 1 extension work.
- Market borrowings of Rs 28,000 crore represented a 19% increase from the previous year to fund reconstruction.
Compare Kerala Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2014-15 | 2015-16 | 2016-17 | 2017-18 | 2018-19 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 1.11 lakh crore | Rs 1.26 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 82,800 crore | Rs 90,500 crore |
| Capital Expenditure | โ | โ | โ | Rs 11,200 crore | Rs 13,200 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.3% | 3.4% |
| Own Tax Revenue | โ | โ | โ | Rs 48,200 crore | Rs 53,200 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Kerala State Budget 2018-19
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