Kerala’s revenue deficit widens to ₹39,023 cr as spending outpaces income
The expenditure will increase further in the coming months as the government had announced several popular programmes, including welfare pensions, before the recent local body election.
The expenditure will increase further in the coming months as the government had announced several popular programmes, including welfare pensions, before the recent local body election.
The expenditure will increase further in the coming months as the government had announced several popular programmes, including welfare pensions, before the recent local body election.
Thiruvananthapuram: The Kerala government’s revenue deficit has reached alarming levels. As per the data with the Accountant General, the revenue – expenditure gap till November 30 was ₹39,023 crore, which is nearly ₹10,000 crore more than the last year’s amount - ₹29,976 crore. In fact, the state government has been meeting the additional expenses with borrowings from the RBI (Reserve Bank of India).
The expenditure will increase further in the coming months as the government had announced several popular programmes, including welfare pensions, before the recent local body election. However, the state government is clueless on measures to find the additional income to meet these expenses. As usual, the state will demand its due share from the Central Government and also seek additional financial support.
The total revenue of the state was affected this year as there was a fall in GST (Goods and Services Tax) income, land tax and Central grant, compared to last year. The state government is particularly perplexed over the lack of growth in GST income, despite intensive efforts in this regard. Similarly, while ₹13,074 crore was expected as grant from the Centre this year, the actual amount received was a mere ₹2,109 crore. Disputes with the Centre and the state’s failure in timely completion of centrally-aided projects have been cited as the reasons for the denial of grants.
As per data, Kerala received only 53.14 per cent of its anticipated budget revenue this year, compared to last year’s 57.53 per cent. Meanwhile, the state’s revenue, excluding borrowings, increased by 1.87 per cent this year and the expenditure went up by 10.64 per cent.
Full budget on January 29
The state government is expected to present a full budget on January 29, 2026 with the aim of earning a third consecutive term. As per the current plan, Finance Minister K N Balagopal will present his sixth budget on that day. Government sources said that even though the state is not in a position to implement major welfare programmes, several crucial announcements could be made considering the Assembly elections scheduled next year.