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The Kerala system posted “strong growth” successful 2024-25 with the Gross State Domestic Product (GSDP) clocking 6.19% maturation successful existent presumption (adjusted for inflation), the Economic Review 2025 tabled successful the State Legislative Assembly connected Wednesday (January 28, 2026) noted, portion highlighting the request for “resilient, innovative and forward-looking fiscal strategies” to tackle prevailing fiscal challenges.
At existent prices (unadjusted for inflation), the GSDP clocked a maturation of 9.97%. The State’s Gross State Value Added (GSVA) – the full worth of goods and services produced successful the system – roseate to 6.59% successful 2024-25 arsenic against 6.34% successful 2023-24. The Economic Review observed that the “realisation of Kerala’s developmental aspirations and its way to economical betterment volition importantly hinge connected collaborative engagement with the Union authorities and the prudent absorption of disposable resources.”
Prepared by the State Planning Board, the papers was tabled successful the House ahead of the tabling of the 2026-27 State Budget connected Thursday (January 29).
Sectors amusement growth
“Spillovers of proactive argumentation interventions” person strengthened maturation crossed sectors, which proceed to beryllium dominated by the services sector, the papers said. “The maturation of GSDP crossed sectors reveals beardown affirmative maturation successful 2024-25, the aforesaid arsenic successful 2023-24. The superior assemblage posted a robust maturation of 2.36% successful 2024-25 successful existent presumption arsenic against 0.24% recorded successful 2023-24. The secondary assemblage grew astatine 7.87% successful 2024-25 successful existent terms, arsenic against 9.74% successful 2023-24,” it said.
Within the superior sector, agriculture and allied activities grew astatine 2.14% compared to 1.25% successful 2023-24. Fishing and aquaculture grew astatine 10.55%, compared to a antagonistic maturation successful 2023-24. The secondary assemblage – manufacture and manufacturing – grew astatine 7.87%. Within the secondary sector, operation and manufacturing grew astatine 8.12% and 7.42% maturation successful existent terms, respectively, successful 2024-25. Sectors, including accusation technology, tourism, hotels and restaurants, communication, trade, and transport (except roadworthy transport), registered a “positive growth,” the Economic Review said.
Debt-GSDP ratio astatine 24.83%
Kerala’s outstanding nationalist indebtedness astatine the extremity of 2024-25 stood astatine ₹3,10,015.86 crore. The yearly maturation complaint of nationalist indebtedness accrued to 15.68% successful 2024-25 from 12.60% successful 2023-24. The debt-GSDP ratio roseate to 24.83% successful 2024-25 compared to 23.60% successful 2023-24.
Revenue receipts, ain taxation gross up
After a diminution successful the erstwhile fiscal, Kerala’s full gross receipts clocked a 0.3% summation successful 2024-25, adjacent arsenic the declining inclination successful Central transfers persisted. Central transfers fell by 6.15% successful 2024-25 implicit 2023-24, which the papers has described arsenic a “sharp decline.” Revenue receipts roseate from ₹1,24,486 crore successful 2023-24 to ₹ 1,24,861.07 crore successful 2024-25. In 2024-25, the State’s Own Tax Revenue (SOTR) accrued to 61.38% of the State’s full revenue. In 2015-16, SOTR had accounted for 56.49%. In 2024-25, SOTR stood astatine ₹76,642.20 crore.
Lottery gross up
Lottery continues to play a large relation successful the State’s ain non-tax gross (SONTR), with receipts from lottery accounting for ₹12,711.18 crore of the ₹16,486.62 earned arsenic non-tax revenue. Lottery gross grew astatine 1.44%.
On the spending side, the full expenditure clocked 9% maturation successful 2024-25 arsenic against 0.5% successful 2023-24. Revenue expenditure grew astatine 9.3% arsenic against 0.5% successful 2023-24. The full superior expenditure accrued by 8.96% successful 2024-25 compared to 0.48% successful 2023-24.
Fiscal shortage arsenic a percent of the GSDP marginally accrued to 3.86% successful 2024-25, and is estimated to beryllium 3.16% successful 2025-26, the Economic Review said. Revenue shortage stands astatine 2.49% of GSDP compared to 1.6% successful 2023-24. Revenue shortage is projected to dip to 1.9% successful 2025-26. “Kerala has been pursuing a prudent fiscal consolidation done gross augmentation and expenditure rationalisation,” the papers noted.
