Kerala State Budget 2024-25 Analysis
Budget EstimateTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Kerala FY 2024-25
Kerala State Budget 2024-25 Budget at a Glance
Total Receipts
Rs 1.39 lakh crore
+9.3%
Total Expenditure
Rs 1.82 lakh crore
+9.9%
Fiscal Deficit
3.4%
Rs 44,529 crore
Capital Expenditure
Rs 15,663 crore
+8.8%
Tax Revenue
Rs 84,884 crore
+10.2%
Interest Payments
Rs 28,694 crore
16% of expenditure
Kerala Revenue Receipts 2024-25
Own tax revenue vs non-tax revenue breakdown
Kerala Expenditure Breakdown 2024-25
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Top 10 Departments by Allocation
Fiscal Deficit as % of GSDP โ Kerala 2024-25
The fiscal deficit for Kerala in 2024-25 is 3.4% of GSDP (Rs 44,529 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 28,694 crore consume 15.8% of total expenditure.
Kerala State Budget 2024-25 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 2.55 lakh crore | 100% |
| 1. Revenue Receipts | Rs 1.39 lakh crore | 54.3% |
| a. Own Tax Revenue | Rs 84,884 crore | 33.2% |
| b. Non-Tax Revenue | Rs 18,356 crore | 7.2% |
| B. Total Expenditure | Rs 1.82 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 1.67 lakh crore | 91.4% |
| 2. Capital Expenditure | Rs 15,663 crore | 8.6% |
| of which: Interest Payments | Rs 28,694 crore | 15.8% |
| C. Fiscal Deficit | Rs 44,529 crore | 3.4% of GSDP |
Source: Kerala State Budget Documents via PRS India. All figures in Indian Rupees.
Kerala Department-wise Expenditure 2024-25
Top departments by allocation in Kerala for 2024-25
| Department โ | Revenue โ | Capital โ | Total โ | Share |
|---|---|---|---|---|
1. Education | Rs 25,500 crore | Rs 1,700 crore | Rs 27,200 crore | 14.9% |
2. Health & Family Welfare | Rs 14,500 crore | Rs 2,100 crore | Rs 16,600 crore | 9.1% |
3. Social Welfare | Rs 12,500 crore | Rs 1,200 crore | Rs 13,700 crore | 7.5% |
4. Rural Development | Rs 9,000 crore | Rs 2,100 crore | Rs 11,100 crore | 6.1% |
5. Police & Home | Rs 8,000 crore | Rs 1,000 crore | Rs 9,000 crore | 4.9% |
6. Agriculture & Allied | Rs 7,200 crore | Rs 1,200 crore | Rs 8,400 crore | 4.6% |
7. Transport & Roads | Rs 4,500 crore | Rs 3,000 crore | Rs 7,500 crore | 4.1% |
8. Urban Development | Rs 5,200 crore | Rs 1,700 crore | Rs 6,900 crore | 3.8% |
9. Water Supply & Sanitation | Rs 4,000 crore | Rs 2,500 crore | Rs 6,500 crore | 3.6% |
10. Energy | Rs 5,000 crore | Rs 1,200 crore | Rs 6,200 crore | 3.4% |
Kerala Budget 2024-25 Analysis & Highlights
Key Highlights
- Total expenditure at Rs 1,95,000 crore under the LDF government's second consecutive budget.
- Fiscal deficit at Rs 28,000 crore โ 3.4% of GSDP.
- KIIFB infrastructure spending at Rs 8,000 crore for roads, bridges, and public buildings.
- Revenue deficit continues at Rs 16,000 crore โ structural imbalance unresolved.
- Lottery revenue at Rs 12,000 crore โ Kerala's unique fiscal resource.
- Health spending at Rs 16,000 crore with Aardram Mission hospital upgrades continuing.
- Outstanding debt at Rs 3,70,000 crore with debt-to-GSDP approaching 36%.
- Silver Line semi-high-speed rail project controversially shelved/downsized amid cost concerns.
- Education spending at Rs 23,000 crore with focus on vocational training and skill development.
- Tourism recovery post-COVID generating improved tax collections.
- Social security pensions increased to Rs 1,600/month covering 55 lakh beneficiaries.
Compare Kerala Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 1.66 lakh crore | Rs 1.82 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 1.27 lakh crore | Rs 1.39 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 14,398 crore | Rs 15,663 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.5% | 3.4% |
| Own Tax Revenue | โ | โ | โ | Rs 77,038 crore | Rs 84,884 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Kerala State Budget 2024-25
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