The per capita debt of Kerala which was Rs.7414 in 2001 increased to Rs.12681 in 2005 as against all state level of Rs. 8343. The per capita debt of neighbouring states in 2005 next to Kerala was Andhra Pradesh (Rs.8427) followed by Tamil Nadu (Rs.7782) and Karnataka (Rs.7446). When the debt/GSDP ratio of Kerala in 2005 was 42 per cent, that of neighbouring states and of all states ranged between 27 per cent and 38 per cent. The revenue deficit of the state came down from Rs.3668.30 crore (3.66 percent of GSDP) in 2004-05 to Rs. 2637.94 crore (1.99 percent of GSDP) in 2006-07.
Kerala economy has bettered its growth rate nominally, but at the cost of having its government fiscals debt-squeezed. The Economic Review-2007, admits that the state's public debt has crossed Rs. 57,138.71 crore from Rs. 45,929.05 crore in the previous year. Growth rate of GSDP (Gross State Domestic Product) is up by 0.1% to 8.1% in 2006-2007. In 2005-2006, this was barely 8%. Per capita income in the state has slightly improved from Rs. 31,438 to Rs. 31,642 in 2006-2007. As much as 61% of Kerala's GSDP is contributed by tertiary sector. Secondary sector accounts for 22% and primary sector just 17% of GSDP. Meanwhile the public debt is growing at double-digit rates. The rate of growth of debt had actually fallen in 2006-2007 to 8.59% from 9.67% in the previous year before soaring to 14.56%. At constant (1999-2000) prices, the primary sector recorded a growth of 6 per cent, the secondary sector 8.3 per cent, tertiary sector 8.7 per cent in 2006-07.
Corresponding to the debt growth, fiscal deficit (FD) has bloated to Rs 7,425.21 crore in 2007-2009. Last year this was only Rs 3,921.87 crore. With salaries, pensions and interests eating over 77% of revenue income, revenue deficit (RD) was a whopping Rs 5,251.16 crore in 2007-2009. In the previous year, this was only Rs 2637.9 crore. Worst is that less than half of the revenue expenditure is devoted to developmental expenditure. Although the fiscals are not shipshape, the state had, in the last fiscal, set aside over Rs 1000 crore for farm sector. Economic Review-2007 also claims that in the second half of 2007, the state has not seen any farmer suicide. At the same time, the rate of increase in agricultural income has fallen compared to that of 2005. From 6.72% in 2005-2006, the growth in farm income has fallen to 6.17%. Increased foreign tourist arrivals are the prime drivers of the state economy.
According to the statistics published by the Department of Economics and Statistics, the quick estimate of gross state domestic product (GSDP) at factor cost at constant prices (2004-05) was Rs.193383.39 crore in 2010-11 as against the provisional estimate of Rs.177209.32 crore during 2009-10, registering a growth rate of 9.13 percent in 2010-11 compared to 8.95 percent in 2009-10. At current prices, it was estimated at Rs.276996.70 crore (quick estimate) in 2010-11 against the provisional estimate of Rs. 232381.05 crore in 2009-10.
The quick estimate of net state domestic product at factor cost at constant prices (2004-05) was Rs.171897.32 crore in 2010-11 compared to the provisional estimate of Rs.157078.22 crore in 2009-10, a growth rate of 9.43% in 2010-11. At current prices the State income was estimated at Rs.246212.72 crore (quick estimate) in 2010-11 compared to the provisional estimate of Rs.206200.31 crore in 2009-10. The State Domestic Product and per capita Income of Kerala is shown below:
Tables showing state income(2004-2006)
As per the statistics published by Department of Economics and Statistics, the quick estimate of Gross State Domestic Product (GSDP) at factor cost at constant (2004-05) prices is Rs. 181289.12 crore during 2009-10 as against the provisional estimate of Rs. 165221.10 crore during 2008-09, registering a growth rate of 9.73 percent in 2009-10 compared to 7.22 percent in 2008-09. At current prices the Gross State Domestic Product is estimated at Rs. 230315.55 crore (quick estimate) during 2009-10 as against the provisional estimate of Rs. 201019.75 crore during 2007-08. The growth rate at current prices is 14.57 per cent in 2009-10 compared to 14.78 per cent in 2008-09.
Per Capita State Income: As per the quick estimates in 2010-11, the per capita gross state domestic product at constant (2004-05) prices was Rs.56107 against the provisional estimate of Rs.51791 in 2009-10, a growth of 8.33% in 2010-11. At current prices, the per capita GSDP in 2010-11 was Rs.80366 registering a growth of 18.33% over the estimate of Rs.67916 in 2009-10. The graph below shows that during the period 2004-05 to 2010-11, the per capita state income is higher than the per capita national income.
Sectoral Distribution of Gross State Domestic Product: The contribution from primary, secondary and tertiary sectors to the GSDP in 2010-11 at constant prices (2004-05) was 11.06%, 20.13% and 68.80%, respectively. At current prices, the same was 14.94 %, 21.08% and 63.98%, respectively. While analysing the sectoral distribution of state income it is seen that the contribution from primary sector has been decreasing and while that of the tertiary sector has been increasing. The contribution of secondary sector remained almost stagnant. The analysis of annual sectoral growth in GSDP showed that tertiary sector recorded the highest rate of growth of 11.57% in 2010-11 at constant (2004-05) prices followed by secondary sector (6.12 %) and primary sector (0.64%). At current prices, the tertiary sector recorded a growth rate of 20.50 %, primary sector 19.97% and secondary sector 14.91%. Sectoral distribution of GSDP during 1960-61 and 2010-11 are shown below:
District-wise Gross State Domestic Product: District wise distribution of Gross State Domestic Product at factor cost at current prices shows that Ernakulam District continues to have the highest income of Rs.40478.48 crore in 2010-11 as against Rs.34131.72 crore in 2009-10 registering a growth rate of 18.59 % . At constant (2004-05) prices it comes to Rs. 28711.07 crore during 2010-11 compared to Rs. 26247.74 crore during 2009-10. Thiruvananthapuram District stands second with an income of Rs. 30078.77 crore in 2010-11 at current prices followed by Thrissur ( Rs. 26465.96 crore), Kozhikode ( Rs. 23923.54crore), Malappuram ( Rs. 22416.34 crore) and Palakkad ( Rs. 20910.13 crore) and the lowest income of Rs. 5093.36 crore was recorded in Wayanad District at current prices during 2010-11 preceded by Kasargod ( Rs. 8540.39 crore), Idukki ( Rs. 9757.31 crore), and Pathanamthitta ( Rs. 10693.88 crore). The districtwise distribution of Gross State Domestic Product is given below:
District-wise Per Capita Income: The analysis of district wise per capita income shows that Ernakulam district stands first with the per capita income of Rs. 85070 at constant (2004-05) prices in 2010-11 as against Rs. 78351 in 2009-10 Kottayam District has the second largest per capita income of Rs. 64648 in 2010-11 at constant prices followed by Thiruvananthapuram ( Rs.60945), Pathanamthitta ( Rs. 60370), Thrissur ( Rs. 59127), and Alappuzha ( Rs. 57298). The lowest per capita income was recorded in Malappuram District ( Rs. 36740) in 2010-11 at constant prices preceded by Wayanad ( Rs. 39051), Kasargod ( Rs. 44572) and Kozhikode ( Rs. 53298). The highest rate of growth of per capita income of 9.31% was recorded in Pathanamthitta District in 2010-11 followed by Thiruvananthapuram (8.98 %), Thrissur (8.84%), Ernakulam (8.57%), and Allappuzha (8.37%). The lowest growth rate was recorded in Idukki District (6.84%) preceded by Wayanad District (7.74%) , Malappuram (7.75%), and Kasargod (7.97 %). The district wise per capita income with growth rate is given below:
Tables showing state income(2007 -2010)
Expenditure Pattern:The major items of expenditure under revenue account are, pension, interest payments, salaries and devolutions to local bodies. The combined expenditure of social and economic services under revenue account constitutes the developmental expenditure. The collective expenditure of maintenance, expansion and development funds given to LSGD also needs to be reckoned as developmental expenditure. Expenditure on interest charges, pension charges, administrative services, police, etc. are the main components of non-developmental revenue expenditure. The ratio of revenue expenditure with relative to GSDP declined slightly to 13.07% in 2010-11 from 13.50% in 2009-10. The decline has been consistent since 2008-09. The share of developmental expenditure in total revenue expenditure marginally improved to 54.58% in 2010-11 from 53.43% in 2009-10. The developmental expenditure estimated in BE 2011-12 accounts for 59.37% of the total revenue expenditure. Trend in revenue expenditure is below:
Capital Expenditure: The consistent efforts to provide adequate funds for creation of capital assets have been apparent since 2007-08. The capital outlay of ` 902.58 crore in 2006-07 rose to ` 1474.58 crore in 2007-08. The trend of enhanced level of capital outlay continued in subsequent years also. The capital outlay increased to ` 3363.69 crore in 2010-11 from ` 2059.38 crore in 2009-10. The ratio of capital outlay to GSDP that stood below 1% in some of the preceeding years advanced to 1.27% in 2010-11. The capital expenditure estimated for 2011-12 is ` 5063.82 crore, its ratio to GSDP being 1.55%. Public works continued to remain the major segment of capital outlay. Details of capital expenditure and total expenditure from 2005-06 to 2011-12 (BE) is shown below:
During 2010-11, the commitments on three major items coming under non-plan/non-developmental expenditure, viz, interest, pension and salary accounted for about 72.68% of the total revenue receipt of the state whereas it was 75.83% in 2009-10. The rate of growth in interest payment during 2010-11 over the previous year was 7.50%. Expenditure as salary during the period went up by 12.94%. As against 2009-10, Expenditure on pension during 2010-11 went up by ` 1061.99 crore. The total Expenditure on interest, pension and salary which was 80.19% of the revenue receipts and 66.57% of revenue expenditure in 2005-06 reached at a level of 72.68% of revenue receipts and 64.98% of revenue expenditure in 2010-11.
Tables showing expenditure pattern