Economics

Global Economic Scenario and National Outlook

The global economy grew at 3.2 per cent in 2023 slightly lower than that in 2022 (3.5 per cent) as per the World Economic Outlook (WEO), October, 2024 of the International Monetary Fund (IMF). The growth of 3.2 per cent in 2023 has been achieved amidst inflationary pressures, rising geopolitical tensions, cross-border restrictions and slower growth in advanced economies (AEs).

The Emerging Market Economies (EMEs) have achieved higher growth in 2023 than projected in 2022. As per the World Economic Outlook (WEO), October, 2024, EME’s growth increased from 4.1 per cent in 2022 to 4.4 per cent in 2023. But, Advanced Economies (AEs) growth declined from 2.6 per cent in 2022 to 1.7 per cent in 2023. Both EMEs and AEs will continue to hold stable growth of 4.2 per cent and 1.8 per cent respectively during 2024 and 2025. Almost all major economies have surpassed to the pre- pandemic real GDP level in 2023. However, the growth registered across countries has been diverse due the divergence in domestic structural issues, uneven exposure to geopolitical conflicts and the impact of monetary policy tightening.

National Income

According to the NSO’s provisional estimate, India’s real Gross Domestic Product (GDP) is Rs1,73,81,722 crore in 2023-24, registering a growth of 8.2 per cent as against 7.0 per cent recorded in 2022-23. The real Gross Value Added (GVA) grew at 7.2 per cent in 2023-24 as compared to 6.7 per cent in 2022-23. However, as per NSO’s First Advance Estimates, India’s real GDP has been estimated to grow by 6.4 percent in 2024-25. This show sharp reduction in growth by 1.8 percent point as compared with growth rate of 2023-24. Nominal GDP has grown by 9.7 percent in 2024-25 as compared to 9.6 percent in 2023-24. The Real GVA has registered a decline in growth by 0.8 per cent to 6.4 percent in 2024-25 as compared to 7.2 percent in 2023-24. The decline in growth is primarily attributed to the decrease in investment. Quarterly growth of GDP and GVA in the FY 2024-25 reveals declining trend. The real GDP grew at 6.7 percent in First Quarter (Q1) of 2024-25, which fell down to 5.4 percent in Second Quarter (Q2). Similarly, real GVA registered a growth of 6.8 percent in Q1 which declined by 1.2 percent point to 5.6 percent in Q2. The declining trend in quarterly growth is primarily attributed to the reduction in private consumption and gross fixed capital. The real per capita GDP is Rs 1,24,600 in 2023-24, registering an increase of 7.2 per cent over the previous year. The details of national income estimates are presented below:

Item	2021-22	2022-23 (1^stRE)	2023-24 (PE)	Percentage change over previous year
Item	2021-22	2022-23 (1^stRE)	2023-24 (PE)	2022-23	2023-24
Domestic Product
GVA at Constant Prices	13876840	14804901	15873751	6.7	7.2
GVA at Current Prices	21635584	24659041	26762147	14.0	8.5
Gross Domestic Product (GDP) at Constant Prices	15021846	16071429	17381722	7.0	8.2
Gross Domestic Product (GDP) at Current Prices	23597399	26949646	29535667	14.2	9.6
Net Domestic Product (NDP) at Constant Prices	13066058	13986798	15146589	7.0	8.3
Net Domestic Product (NDP) at Current Prices	20930595	23809748	26127976	13.8	9.7
National Product
Gross National Income (GNI) at Constant Prices	14827920	15831133	17125892	6.8	8.2
Gross National Income (GNI) at Current Prices	23319590	26579339	29104354	14.0	9.5
Net National Income (NNI) at Constant Prices	12872132	13746502	14890760	6.8	8.3
Net National Income (NNI) at Current Prices	20652786	23439442	25696663	13.5	9.6
Per Capita Income
Per Capita GDP (Rs) at Constant Prices	109762	116216	124600	5.9	7.2
Per Capita GDP (Rs) at Current Prices	172422	194879	211725	13.0	8.6
Per Capita GNI (Rs) at Constant Prices	108345	114478	122766	5.7	7.2
Per Capita GNI (Rs) at Current Prices	170392	192201	208633	12.8	8.5
Per Capita NNI (Rs) at Constant Prices	94054	99404	106744	5.7	7.4
Per Capita NNI (Rs) at Current Prices	150906	169496	184205	12.3	8.7
Source: National Statistical Office, Ministry of Statistics & Programme Implementation, Government of India E: Revised Estimate, PE: Provisional Estimate

The details of India’s GDP, NDP, GNI and NNI at current and constant (2011-12) prices from 2013-14 to 2023-24 are presented below:

Gross Domestic Product (GDP) - All India
Year	At Current Prices			At Constant (2011-12) Prices
Year	GDP (Rs Crore)	% change	Per Capita GDP (Rs)	GDP (Rs Crore)	% Change	Per Capita GDP (Rs)
2013-14	11233522	13.0	89796	9801370	6.4	78348
2014-15	12467959	11.0	98405	10527674	7.4	83091
2015-16	13771874	10.5	107341	11369493	8.0	88616
2016-17	15391669	11.8	118489	12308193	8.3	94751
2017-18	17090042	11.0	130061	13144582	6.8	100035
2018-19	18899668	10.6	142424	13992914	6.5	105448
2019-20	20103593	6.4	149915	14534641	3.9	108387
2020-21	19854096.01	-1.2	146480	13694869	-5.8	101038
2021-22	23597399	18.9	172422	15021846	9.7	109762
2022-23(1^st RE)	26949646	14.2	194879	16071429	7.0	116216
2023-24(PE)	29535667	9.6	211725	17381722	8.2	124600
RE-Revised Estimate, PE-Provisional Estimate Source: Central Statistical Office, 2024

Net Domestic Product (NDP) - All India
Year	At Current Prices			At Constant (2011-12) Prices
Year	NDP (Rs Crore)	% change	Per Capita NDP (Rs)	NDP (Rs Crore)	% Change	Per Capita NDP (Rs)
2013-14	10037547	13.00	80236	8700760	6.08	69550
2014-15	11125668	10.84	87811	9349029	7.45	73788
2015-16	12322177	10.75	96041	10098603	8.02	78710
2016-17	13800336	10.71	106238	10926667	8.20	84115
2017-18	15325231	11.05	114282	11654661	6.66	88696
2018-19	16915378	10.38	127470	12378459	6.00	93281
2019-20	17939982	6.06	133780	12803462	3.00	95476
2020-21	17513509	-2.38	129250	11862110	-7.00	87543
2021-22	20930595	19.60	152890	13066058	10.20	95442
2022-23(1^st RE)	23809748	13.80	172160	13986798	7.00	101134
2023-24(PE)	26127976	9.70	187297	15146589	8.30	108578
RE-Revised Estimate, PE-Provisional Estimate Source: Central Statistical Office, 2024

Gross National Income (GNI) – All India
Year	At Current Prices			At Constant (2011-12) Prices
Year	GNI (Rs Crore)	% change	Per Capita GNI (Rs)	GNI (Rs Crore)	% Change	Per Capita GNI (Rs)
2013-14	11093638	12.89	88678	9679027	6.0	77370
2014-15	12320529	11.06	97242	10402987	7.0	82107
2015-16	13612095	10.48	106096	11234571	8.0	87565
2016-17	15215268	10.54	117131	12163619	8.0	93638
2017-18	16905230	11.12	128655	12998695	7.0	98925
2018-19	18697344	10.60	140899	13840474	6.0	104299
2019-20	19910479	6.00	148475	14392900	4.0	107330
2020-21	19587409	-1.62	144512	13493976	-6.0	99556
2021-22	23319590	19.2	170392	14827920	9.9	108345
2022-23(1^stRE)	26579339	14.0	192201	15831133	6.8	114478
2023-24(PE)	29104354	9.5	208633	17125892	8.2	122766
RE-Revised Estimate, PE-Provisional Estimate Source: Central Statistical Office, 2024

Net National Income (NNI) – All India
Year	At Current Prices			At Constant (2011-12) Prices
Year	NNI (Rs Crore)	% change	Per Capita NNI (Rs)	NNI (Rs Crore)	% Change	Per Capita NNI (Rs)
2013-14	9897663	12.91	79118	8578417	5.98	68572
2014-15	10978238	10.92	86647	9224343	7.53	72805
2015-16	12162398	10.8	94797	9963681	8.02	77659
2016-17	13623936	12.02	104880	10782092	8.21	83003
2017-18	15140418	11.13	115224	11508774	6.74	87586
2018-19	16713054	10.39	125946	12226019	6.23	92133
2019-20	17746868	6.19	132341	12661722	3.56	94420
2020-21	17246821	-2.82	127244	11661217	-7.90	86034
2021-22	20652786	19.9	150906	12872132	10.3	94054
2022-23(1^st RE)	23439442	13.5	169496	13746502	6.8	99404
2023-24(PE)	25696663	9.6	184205	14890760	8.3	106744
RE-Revised Estimate, PE-Provisional Estimate Source: Central Statistical Office, 2024

The sectorial composition of GVA at constant and current prices presented below:

Provisional Estimates of GVA at Basic Price by Economic Activity- All India (At 2011-12 prices) (RS. Crore)
Sl.No	Industry	2021-22	2022-23 (1^st RE)	2023-24 (PE)	Percentage change over previous year
Sl.No	Industry	2021-22	2022-23 (1^st RE)	2023-24 (PE)	2022-23	2023-24
1	Primary Sector	2479383	2587506	2642605	4.4	2.1
1.1	Agriculture, forestry & fishing	2170106	2272250	2304982	4.7	1.4
1.2	Mining & quarrying	309276	315256	337623	1.9	7.1
2	Secondary Sector	4072531	4158892	4561935	2.1	9.7
2.1	Manufacturing	2561033	2504663	2751680	-2.2	9.9
2.2	Electricity, gas, water supply &other utility services	317966	347973	374174	9.4	7.5
2.3	Construction	1193532	1306256	1436081	9.4	9.9
3	Tertiary Sector	7324296	8058501	8669210	10.0	7.6
3.1	Trade, hotels, transport, communication and services related to broadcasting	2480380	2777723	2955767	12.0	6.4
3.2	Financial, real estate &professional services	3122847	3405474	3691645	9.1	8.4
3.3	Public Administration, defence and other services	1721699	1875304	2021798	8.9	7.8
	GVA at Basic Price	13876840	14804901	15873751	6.7	7.2
RE- revised Estimates, PE- Provisional Estimates Source: Central Statistical Office, 2024

Provisional Estimates of GVA at Basic Price by Economic Activity-All India (At Current prices) (Rs Crore)
SL.No	Industry	2021-22	2022-23 (1^st RE)	2023-24 (PE)	Percentage change over previous year
SL.No	Industry	2021-22	2022-23 (1^st RE)	2023-24 (PE)	2022-23	2023-24
1	Primary Sector	4538812	4978870	5251104	9.7	5.5
1.1	Agriculture, forestry & fishing	4099473	4484268	4725223	9.4	5.4
1.2	Mining & quarrying	439339	494602	525881	12.6	6.3
2	Secondary Sector	5806072	6319363	6867083	8.8	8.7
2.1	Manufacturing	3392605	3536461	3819749	4.2	8.0
2.2	Electricity, gas, water supply &other utility services	577793	604209	663458	4.6	9.8
2.3	Construction	1835674	2178693	2383877	18.7	9.4
3	Tertiary Sector	11290700	13360808	14643960	18.3	9.6
3.1	Trade, hotels, transport, communication and services related to broadcasting	3674918	4410148	4684542	20.0	6.2
3.2	Financial, real estate &professional services	4645873	5520163	6064251	18.8	9.9
3.3	Public Administration, defence and other services	2969909	3430497	3895167	15.5	13.5
	GVA at Basic Price	21635584	24659041	26762147	14.0	8.5
RE- revised Estimates, PE- Provisional Estimates Source: Central Statistical Office, 2024

State Income

Kerala is placed among the top ten States in India with high per-capita income and Gross State Domestic Product (GSDP). Kerala economy posted a robust growth in 2023-24 as well. The real GSDP is Rs 6,35,13,653 lakh (QE) in 2023-24, registering a growth of 6.5 in 2023-24 from 4.2 per cent in 2022-23. The real Gross State Value Added (at 2011-12 prices) increased to 7.2 in 2023-24 from 5.3 per cent in 2022-23. GSDP at current price is Rs11,46,10,867 lakh in 2023-24, depicting an increase in growth of 11.9 per cent compared to 10.7 per cent in 2022-23. The per capita GSDP of Kerala increased by 5.5 per cent to Rs1,76,072 in 2023-24 as against national average of Rs1,24,600. The average income per person in Kerala is higher than the national average. Details are given below:

State Income Statistics for Kerala from 2020-21 to 2023-24 (Rs in Lakhs)
Item	2020-21	2021-22	2033-23 (P)	2023-24 (Q)	Percentage Change over year Previous
Item	2020-21	2021-22	2033-23 (P)	2023-24 (Q)	2021-22	2022-23 (P)	2023-24 (Q)
Gross State Domestic Product
At Constant (2011-12) prices	51170292	57198296	59623686	63513653	11.78	4.24	6.52
At Current prices	77172389	92446542	102360246	114610867	19.79	10.72	11.97
Net State Domestic Product
At Constant (2011-12) prices	46405239	52425887	54598961	58422079	12.97	4.14	7.0
At Current prices	68079798	81917594	90240846	101364139	20.32	10.16	12.32
Gross State Value Added (GSVA)
At Constant (2011-12) prices	44498213	50099348	52763002	56564302	12.59	5.32	7.20
At Current prices	68579335	82303202	91614842	102604351	20.01	11.31	12.00
Per capita GSDP
At Constant (2011-12) prices	146139	160791	166938	176072	10.03	3.82	5.47
At Current Prices	220400	259878	286595	317723	17.91	10.28	10.86
Per capita NSDP
At Constant (2011-12) prices	132531	147376	152870	161957	11.20	3.73	5.94
At Current prices	194432	230280	252662	281001	18.43	9.71	11.21
Source: Department of Economics and Statistics, Government of Kerala P: Provisional Estimate, Q: Quick Estimate

Per Capita State Income

Kerala is among the top ten States in India with high per-capita income. Per capita Gross State Domestic Product at constant prices is Rs 1,76,072 in 2023-24, the corresponding all-India average (per capita GDP) is Rs 1,24,600. In other words, average income per person in Kerala is 1.4 times the national average in 2023-24. The per capita GSDP at constant prices of Kerala grew at 5.47 per cent in 2023-24.

Per capita NSDP of Kerala is Rs 1,61,957 at constant prices, and Rs 2,81,001 at current prices in 2023-24 (QE). The per capita NSDP at constant prices grow at 5.9 per cent and that at current prices grow at 11.2 per cent in 2023-24. The Figure below show per capita NDP (India) and NSDP (Kerala) at constant price from 2013-14 to 2023-24. Kerala’s Per capita NSDP is higher than the per capita NDP.

Per captia NSDP and per capita NDP at constant, prices 2011-12

Sectorial Composition

The sectoral share reveals the services sector dominate the economy with 64.2 per cent share in GSVA. On the other hand, the Primary and Secondary sector’s share in GSVA has been declining over the years. The sectoral share of GSVA across secondary sector reveals, construction continues to occupy the largest share (14.07 per cent) in 2023-24 followed by Manufacturing (11.5 per cent). In the Tertiary sector, ‘Trade, repair, hotels & restaurant’ has the largest share of 20.02 per cent in GSVA. The other major sub-sectors with higher share in GSVA include, ‘Real estate, ownership of dwelling & professional services’, and ‘Manufacturing’, in 2023-24. The details of sector wise GSVA distribution is presented in the below:

Sectoral Distribution of Gross State Value Added (GSVA) at Constant Prices in recent years (Rs in lakh)
Industry of Origin	2020-21	2021-22	2022-23 (P)	2023-24 (Q)
Industry of Origin	%share	%share	%share	%share
Agriculture, forestry and fishing	9.64	8.92	8.51	8.30
Mining and quarrying	0.47	0.47	0.49	0.48
Primary	10.11	9.39	9.00	8.78
Manufacturing	13.31	12.37	11.99	11.52
Electricity, gas, water supply & other utility services	1.48	1.55	1.38	1.39
Construction	14.64	14.44	14.42	14.07
Secondary	29.43	28.36	27.78	26.97
Trade, repair, hotels & restaurants	15.47	16.67	18.74	20.02
Transport, storage, communication & services related to broadcasting	6.59	7.53	7.26	6.93
Financial services	6.18	5.69	5.57	5.50
Real estate, ownership of dwelling & professional services	18.46	17.63	17.67	17.80
Public administration	3.21	4.31	3.63	3.44
Other services	10.55	10.43	10.36	10.56
Tertiary	60.46	62.25	63.22	64.25
TOTAL GSVA at basic prices	100	100	100	100
Source: Department of Economics and Statistics, Government of Kerala P: Provisional, Q: Quick Estimate

The sectoral composition of GSDP reveals a strong positive growth across sectors in 2023-24 as compared to previous year. Primary sector posted a robust growth of 4.7 per cent in 2023-24 as against 0.94 per cent recorded in 2022-23. The secondary sector grows at 4.1 per cent in 2023-24 as against 3.2 per cent in 2022-23. Services sector achieved strong growth of 8.9 per cent in 2023-24 as compared to 7 per cent growth in 2022-23. Spill overs of proactive policy interventions of the Government contributed to boost growth across sectors. The quick estimates of 2023-24 reveals the service sector continues to drive Kerala economy by contributing 64.3 per centage of GSVA, followed by the Secondary (27 per cent) and Primary (9 per cent) sectors. Sectoral composition of growth (GSVA at constant prices) is given below:

Growth rate (GSVA at constant prices) of the three basic sectors of the State economy since2020-21

All the three sectors registered higher growth in 2023-24 compared to 2022-23. The details of the sectoral distribution of GSVA in current and constant prices are given in Table 1 and Table 2. Details of GSVA and NSVA at constant and current prices from 2013-14 to 2023-24 are given in Tabel 1, Table 2, Table 3 and Table 4.

Sector-wise Distribution of Value Added and Employment

The structure of the economy and workforce participation in Kerala is different from that of India. In 2023-24, the primary sector employs 46.3 per cent of the work force in India, whereas it is 27.30 per cent in Kerala. The primary sector employing 46.3 per cent of workforce contributes 16.6 per cent to GSVA of India. The secondary sector’s share in GVA at the national and State levels is similar at around 27 to 28 per cent. The share of secondary sector in employment is also more or less same at around 24 per cent. The tertiary sector’s share in GSVA and employment is remarkably higher in Kerala as compared to India. Details are provided below:

Shares of different sectors in Gross Value Added (at constant prices) and Employment, Kerala and India, 2023-24
Sectors	Shares in Gross Value Added 2023-24		Shares in employment
Sectors	Kerala (GSVA)	India (GVA)	Kerala	India
Agriculture, livestock, forestry and fishing	8.30	14.52	26.97	46.07
Mining and quarrying	0.48	2.13	0.33	0.23
Primary	8.78	16.65	27.30	46.30
Manufacturing	11.52	17.33	9.94	11.44
Electricity, gas, water supply and other utility services	1.39	2.36	0.84	0.54
Construction	14.07	9.05	13.39	11.98
Secondary	26.97	28.74	24.17	23.96
Trade, repair, hotels and restaurants	20.02		19.46	12.2
Transport, storage, communication and services related to broadcasting	6.93	18.62	8.14	5.6
Financial, real estate and professional services	23.30	23.26	4.4
Public Administration and other services	14.0	12.74	16.53	11.9
Tertiary	64.25	54.61	48.53	29.73
Total	100	100	100	100
Sources: Department of Economics and Statistics (for GSVA of Kerala) and National Accounts Statistics (for GVA of India) and Periodic Labour Force Survey (PLFS) carried out by India’s Central Statistical Office, 2023-24 for data on employment.

District-wise GSVA

District-wise distribution of GSVA at current prices reveals Ernakulum has the highest income of Rs 1,35,99,835 lakh in 2023-24 as against Rs 1,22,97,834 lakh in 2022-23, registering a growth of 10.59 per cent followed by Thrissur and Thiruvananthapuram. The highest growth rate in GDVA at current prices was registered in Malappuram (14.87 per cent). The Gross District Value Added of all the districts is given below:

Gross District Value Added of districts of Kerala (at current and constant price)
Sl.No	District Name	Gross District Value Added (Rs in Lakh)
Sl.No	District Name	At Current Price 2022-23 (P)	2023-24 (Q)	Growth Rate (%)	2022-23 (P)	2023-24 (Q)	Growth Rate (%)
1	Thiruvananthapuram	9031699	10069749	11.49	5150304	5495068	6.69
2	Kollam	8692114	9755665	12.24	4955504	5339577	7.75
3	Pathanamthitta	2445861	2691377	10.04	1376098	1461422	6.20
4	Alappuzha	7392894	8269206	11.85	4319534	4612284	6.78
5	Kottayam	6038994	6749916	11.77	3566346	3831685	7.44
6	Idukki	3074806	3518906	14.44	1695349	1833073	8.12
7	Ernakulam	12297834	13599835	10.59	7180009	7630108	6.27
8	Thrissur	9483410	10577828	11.54	5507513	5876192	6.69
9	Palakkad	6432101	7240400	12.57	3702198	3979321	7.49
10	Malappuram	8011996	9203449	14.87	4549120	4983653	9.55
11	Kozhikode	7694879	8621938	12.05	4423378	4747953	7.34
12	Wayanad	1629640	1836884	12.72	867918	933797	7.59
13	Kannur	6385578	7115136	11.43	3741260	3988963	6.62
14	Kasaragod	3003037	3354061	11.69	1728470	1851207	7.10
GSVA		91614843	102604351	12.00	52763002	56564302	7.20
Source: Department of Economics and Statistics, (P: Provisional Q: Quick) District-wise Per Capita Income (GSVA)

District-wise Per Capita Income (GSVA)

Among districts, Ernakulum has the highest per capita income of Rs 2,38,986 at constant prices in 2023-24 as against Rs 2,28,759 in 2022-23. Malappuram and Wayanad are at the bottom with the lowest per capita income. The per capita income ranks of the districts remain same in 2023- 24 like in 2022-23. Seven districts have per capita income lower than the State average. The per capita gross district value added (at constant price) with corresponding rank and growth rate is given below:

Per Capita Gross District Value Added at constant prices
Sl.No.	District	2022-23 (P) Rs	Rank	2023-24 (Q) Rs	Rank	Growth Rate (%)
1	Thiruvananthapuram	170216	7	179231	7	5.30
2	Kollam	207121	3	220354	3	6.39
3	Pathanamthitta	132884	12	139995	12	5.35
4	Alappuzha	224041	2	236305	2	5.47
5	Kottayam	200526	4	212921	4	6.18
6	Idukki	174187	6	186407	6	7.02
7	Ernakulam	228759	1	238986	1	4.47
8	Thrissur	185919	5	195125	5	4.95
9	Palakkad	136421	10	144010	10	5.56
10	Malappuram	107737	14	115288	14	7.01
11	Kozhikode	147812	9	155738	9	5.36
12	Wayanad	112489	13	119128	13	5.90
13	Kannur	156872	8	164601	8	4.93
14	Kasaragod	134370	11	141130	11	5.03
State		166938		176072
Source: Department of Economics and Statistics, Government of Kerala (P: Provisional, Q: Quick)

Idukki (7.02 per cent) registered the highest growth of per capita GDVA in 2023-24, whereas Ernakulam District (4.47 per cent) is at the bottom. District-wise and sectoral distribution of GSVA from 2021-22 to 2023-24 at current and constant prices are given in Appendix 1.1.14, 1.1.15, 1.1.16, 1.1.17, 1.1.18 and 1.1.19.

Expenditure Pattern:

Expenditure of State includes three components viz. revenue expenditure, capital expenditure and expenditure on loan disbursements. The total expenditure in nominal terms increased from Rs 76,744.12 crore in 2014-15 to Rs 1,59,506.24 crore in 2023-24, recording a CAGR of 7.81 per cent. During the period 2022-23 to 2023-24, the Plan expenditure of the government was increased by Rs 1,560.53 crore and the Non-Plan expenditure reduced by Rs 792.72 crore. Out of the total expenditure in 2023-24, Non-Plan and Plan expenditure stood at Rs 1,25,195.73 crore (78.49 per cent) against Rs 1,25,988.45 crore in 2022-23 and Rs 34,310.51 crore (21.51 per cent) against Rs 32,749.98 crore respectively.

Revenue Expenditure:

Revenue expenditure involves both development and non-development expenditure. Development expenditure includes expenditure on Education, Health, Agriculture and Animal Husbandry, Industries, Labour and Employment. Non-development expenditure comprises interest payment, pension payment, debt charges, administrative services and others. Details of revenue expenditure are given below:

Trend in Revenue Expenditure, Rs in crore
Year	Total Revenue Expenditure		Development Expenditure		Non-Development Expenditure
Year	Amount	Annual Growth Rate	Amount	% of total revenue exp.	Amount	% of total revenue exp.
2012-13	53488.74	16.17	29889.0	55.88	23599.7	44.12
2013-14	60485.50	13.08	32921.1	54.43	27564.4	45.57
2014-15	71746.43	18.62	39182.2	54.61	32564.2	45.39
2015-16	78689.47	9.68	41762.7	53.07	36926.8	46.93
2016-17	91096.31	15.77	48602.6	53.35	42493.7	46.65
2017-18	99948.35	9.72	52979.5	53.01	46968.8	46.99
2018-19	110316.39	10.37	56788.0	51.48	53528.4	48.52
2019-20	104719.92	-5.07	47550.2	45.41	57169.7	54.59
2020-21	123446.33	17.88	71224.0	57.70	52222.3	42.30
2021-22	146179.51	18.42	74026.85	50.64	72152.66	49.36
2022-23	141950.94	-2.89	70133.18	49.41	71817.75	50.59
2023-24	142626.34	0.48	62657.34	43.93	79969.00	56.07
2024-25 BE	166501.21	16.74	81985.79	49.24	84515.42	50.76
Note: From 2006-07 onwards, assistance to LSG is being classified under “Grant in Aid and Contributions”, Developmental Expenditure of the devolutions to LSGs is also reckoned.

The operational and maintenance cost for the completed projects and programmes are also classified under the revenue account. Grants provided by the State to meet salaries and pension liabilities of employees in the Universities and State autonomous bodies and also the pension liabilities of employees of Panchayat Raj Institutions are classified as revenue expenditure. Major portion of revenue expenditure devolved to the Local Self Government Institutions is utilised for the creation of capital assets at the local government level.

Revenue expenditure increased nominally to Rs 1,42,626.34 crore in 2023-24 as against Rs 1,41,950.94 crore in 2022-23. Of the total revenue expenditure of 2023-24, plan expenditure was Rs18,620.61 crore and non-plan expenditure was Rs 1,24,005.73 crore. During this period, the plan expenditure out of revenue expenditure increased by Rs 6,75.4 crore and the non-plan expenditure decreased by Rs 5,86.68 crore respectively. Similarly, the ratio of revenue expenditure to GSDP decreased to 12.44 per cent in 2023-24 compared to13.87 per cent in the previous year.

In 2023-24, the share of committed expenditure in revenue expenditure marginally decreased to 71.26 per cent compared to the previous year level of 71.54 per cent. Expenditure on committed expenditure comprises liabilities on salaries, pension, interest payments, subsidies and devolution to the LSGIs. In 2022-23, salary and pension as per cent of total revenue expenditure is 45 per cent in 2022-23 and 2023-24. Interest payment as per cent of total revenue expenditure was 18.92 per cent in 2023-24 compared to 17.74 per cent in 2022-23. Details of Revenue expenditure are given in the Appendix 1.5.4 and Appendix 1.5.5.

Capital Expenditure:

As most of State expenditure on Human Capital is categorised as revenue expenditure, the outlay in capital expenditure has always been small. Still, the Government of Kerala is committed to infrastructural development in the State and has initiated innovative financing models to support major infrastructural projects for the sustainable development of the State economy. These models have already begun to show positive results by attracting long term investment in capital projects. Details of capital expenditure and total expenditure are given here.

The share of government spending on capital projects in various sectors has increased in recent years. The capital expenditure of the State in 2023-24 was Rs 16,880.17 crore. Public Works continued to remain the major segment of capital outlay with 16.70 per cent of the total capital outlay in 2023-24 followed by, Agriculture and allied activities (2.75 per cent), Industries and Labour (4.03 per cent), and Irrigation (2.51 per cent). The trend in capital outlay is given below:

Trend in Capital Outlay (Rs.Crore)
Year	Irrigation	Agriculture & Allied Services	Industries, Labour and Empl.	Public Works	Others	Total
2012-13	340.6	192.11	273.95	2142.92	1653.71	4603.29
2013-14	342.39	210.62	342.24	1549.43	1849.65	4294.33
2014-15	270.24	355.9	260.22	1578.94	1789.29	4254.59
2015-16	526.23	473.08	334.94	2924.26	3241.53	7500.04
2016-17	674.83	555.62	516.79	3001.88	5376.83	10125.95
2017-18	544.49	629.83	548.06	2595.57	4430.92	8748.87
2018-19	271.78	543.95	276.74	2000.48	4337.58	7430.54
2019-20	282.83	340.37	254.01	2435.51	5142.08	8454.8
2020-21	302.14	464.87	486.1	2881.18	8755.36	12889.65
2021-22	440.64	478.89	541.36	3467.16	9263.67	14191.73
2022-23	402.68	761.81	529.25	2712.25	12381.49	16787.49
2023-24	341.05	372.82	547.89	2268.43	10054.27	13584.46
2024-25BE	577.48	407.52	819.19	3080.17	10778.86	15663.22
Source: Department of Finance, GoK

Global Economic Scenario during the Covid - 19 Pandemic

National and State Income for the period 2008-23

Source: Central Statistical Organization and Department of Economic & Statistics,

Economic Review 2008-24, Department of Economics and Statistics, Government of Kerala