Thiruvananthapuram: Kerala’s tax revenue rose by ₹11,139 crore in the first half of the 2026-27 financial year, while non-tax revenue nearly doubled, even as concerns over borrowings and shortfalls in central grants persist.

The state collected ₹62,506 crore in tax revenue between April and September, up 21.69% from ₹51,367 crore during the corresponding period last year, under the previous LDF government. Non-tax revenue increased from ₹5,968 crore to ₹10,263 crore, a rise of ₹4,295 crore.

Expenditure on development projects also rose to ₹11,596 crore from ₹7,379 crore in the same period last year.

However, the government has already utilised 63% of its planned borrowings for the financial year, raising concerns over its finances in the coming months.

Against the budgeted ₹11,932 crore in central grants, Kerala has received only ₹505 crore so far, with no disbursements since July.

Meanwhile, the Kerala Infrastructure Investment Fund Board (KIIFB) has mobilised ₹25,613 crore outside the government's guarantees. The Pension Company has raised ₹5,320 crore under a government guarantee to fund welfare pensions.

Supplyco and the Kerala State Road Transport Corporation (KSRTC) have borrowed ₹2,351 crore and ₹2,837 crore, respectively.