Kerala State Budget 2019-20 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Kerala FY 2019-20
Kerala State Budget 2019-20 Budget at a Glance
Total Receipts
Rs 95,200 crore
+5.2%
Total Expenditure
Rs 1.34 lakh crore
+6.4%
Fiscal Deficit
3.5%
Rs 25,200 crore
Capital Expenditure
Rs 12,500 crore
-5.3%
Tax Revenue
Rs 55,800 crore
+4.9%
Interest Payments
Rs 18,400 crore
14% of expenditure
Kerala Revenue Receipts 2019-20
Own tax revenue vs non-tax revenue breakdown
Kerala Expenditure Breakdown 2019-20
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Kerala 2019-20
The fiscal deficit for Kerala in 2019-20 is 3.5% of GSDP (Rs 25,200 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 18,400 crore consume 13.8% of total expenditure.
Kerala State Budget 2019-20 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 1.41 lakh crore | 100% |
| 1. Revenue Receipts | Rs 95,200 crore | 67.8% |
| a. Own Tax Revenue | Rs 55,800 crore | 39.7% |
| b. Non-Tax Revenue | Rs 6,800 crore | 4.8% |
| B. Total Expenditure | Rs 1.34 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 1.21 lakh crore | 90.7% |
| 2. Capital Expenditure | Rs 12,500 crore | 9.3% |
| of which: Interest Payments | Rs 18,400 crore | 13.8% |
| C. Fiscal Deficit | Rs 25,200 crore | 3.5% of GSDP |
Source: Kerala State Budget Documents via PRS India. All figures in Indian Rupees.
Kerala Budget 2019-20 Analysis & Highlights
Key Highlights
- Revenue receipts of Rs 95,200 crore grew at only 5.2% as the economy struggled to recover from the twin shocks of 2018 floods and subsequent 2019 floods.
- Kerala experienced severe flooding again in August 2019, particularly devastating Wayanad district with massive landslides.
- Fiscal deficit at 3.5% of GSDP at Rs 25,200 crore reflected the continuing strain of post-flood reconstruction and welfare spending.
- GSDP growth decelerated to 6.5% in nominal terms, the slowest pace since the 2008 global financial crisis.
- Total outstanding debt reached Rs 2,48,000 crore with debt-to-GSDP ratio rising to 34.4%, triggering fiscal sustainability concerns.
- KIIFB cumulative project sanctions exceeded Rs 50,000 crore, making it the largest off-budget infrastructure vehicle among Indian states.
- Social security pension beneficiaries reached 5.8 million with monthly amounts at Rs 1,400 for most categories.
- Healthcare spending focused on COVID preparedness in the final quarter as Kerala detected India's first cases in January 2020.
- Gulf economies implemented stricter labour market rules, accelerating return migration and impacting remittance growth.
- Tourism sector recovered partially to Rs 45,000 crore in earnings before COVID-19 disrupted the final quarter.
- Interest payments at Rs 18,400 crore reached 19% of revenue receipts, approaching stress levels.
- Market borrowings of Rs 32,000 crore continued the elevated trajectory to fund reconstruction and revenue deficits.
- The Sabarimala temple issue and subsequent political turmoil impacted economic sentiment and tourism patterns.
- Capital expenditure at Rs 12,500 crore included second round of flood reconstruction and Vizhinjam port construction.
Compare Kerala Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2015-16 | 2016-17 | 2017-18 | 2018-19 | 2019-20 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 1.26 lakh crore | Rs 1.34 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 90,500 crore | Rs 95,200 crore |
| Capital Expenditure | โ | โ | โ | Rs 13,200 crore | Rs 12,500 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.4% | 3.5% |
| Own Tax Revenue | โ | โ | โ | Rs 53,200 crore | Rs 55,800 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Kerala State Budget 2019-20
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