Kerala State Budget 2020-21 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Kerala FY 2020-21
Kerala State Budget 2020-21 Budget at a Glance
Total Receipts
Rs 89,500 crore
-6.0%
Total Expenditure
Rs 1.37 lakh crore
+2.5%
Fiscal Deficit
4.5%
Rs 31,500 crore
Capital Expenditure
Rs 11,200 crore
-10.4%
Tax Revenue
Rs 49,800 crore
-10.8%
Interest Payments
Rs 21,000 crore
15% of expenditure
Kerala Revenue Receipts 2020-21
Own tax revenue vs non-tax revenue breakdown
Kerala Expenditure Breakdown 2020-21
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Kerala 2020-21
The fiscal deficit for Kerala in 2020-21 is 4.5% of GSDP (Rs 31,500 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's deficit is above this threshold, driven by higher capital spending needs.
Interest payments at Rs 21,000 crore consume 15.3% of total expenditure.
Kerala State Budget 2020-21 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 1.43 lakh crore | 100% |
| 1. Revenue Receipts | Rs 89,500 crore | 62.8% |
| a. Own Tax Revenue | Rs 49,800 crore | 34.9% |
| b. Non-Tax Revenue | Rs 6,200 crore | 4.4% |
| B. Total Expenditure | Rs 1.37 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 1.26 lakh crore | 91.8% |
| 2. Capital Expenditure | Rs 11,200 crore | 8.2% |
| of which: Interest Payments | Rs 21,000 crore | 15.3% |
| C. Fiscal Deficit | Rs 31,500 crore | 4.5% of GSDP |
Source: Kerala State Budget Documents via PRS India. All figures in Indian Rupees.
Kerala Budget 2020-21 Analysis & Highlights
Key Highlights
- COVID-19 severely impacted Kerala's tourism and remittance-dependent economy.
- Gulf country economic slowdowns reduced remittance inflows by 15-20%.
- Tourism revenue collapsed to near-zero โ backwater, Ayurveda, and heritage tourism devastated.
- Kerala's COVID response was internationally recognised as a model for developing countries.
- Health system leveraged decades of primary care investment for effective pandemic management.
- Fiscal deficit widened as revenue collapsed while health spending surged.
- Social security pensions maintained despite fiscal stress โ zero payment delays.
- Education shifted entirely to online through KITE-VICTERS TV channel for school instruction.
- KIIFB continued infrastructure projects as employment generation measure.
- Rubber and spice prices declined, affecting plantation economy.
Compare Kerala Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 1.34 lakh crore | Rs 1.37 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 95,200 crore | Rs 89,500 crore |
| Capital Expenditure | โ | โ | โ | Rs 12,500 crore | Rs 11,200 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.5% | 4.5% |
| Own Tax Revenue | โ | โ | โ | Rs 55,800 crore | Rs 49,800 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Kerala State Budget 2020-21
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