THIRUVANANTHAPURAM: The Comptroller and Auditor General's annual report stated that the state's financial security was shattered in 2020-21. It also warned that the economy will become more vulnerable if strict financial discipline and rational steps to increase revenue are not taken. The report was tabled in the Assembly yesterday.
According to the Fiscal Responsibility Act approved by the State, the revenue deficit should be in comparison to the GDP. However, it is 3.40 per cent higher in Kerala. The fiscal deficit stood at 5.40 per cent. Public debt accounted for 39.87% of total revenue. The GDP of the State during the year 2020-21 is Rs 758941.60 crore.
According to the report, the central assistance increased to Rs 31068.28 crore from Rs 11388.96 crore and Rs 11235.26 crore in the previous two years. This has helped bring the total revenue of the state to at least Rs 758942 crore. At the same time, there was a huge increase in revenue expenditure during this period. Revenue expenditure increased from Rs 91096.31 crore in 2016-17 to Rs 123446.33 crore in 2020-21.
The government guarantee for various loans increased from Rs 20204.10 crore in 2016-17 to Rs 49076.88 crore in 2020-21. Of this, Rs 36600.98 crore remains as a liability. While the state had borrowed Rs 23857.89 crore in 2016-17, it borrowed Rs 69735.36 crore in 2020-21.
Decreased tax revenue
Total debt