THIRUVANANTHAPURAM: Even as the state recorded modest increase in tax and non-tax revenues, overall revenue receipts declined in 2023-24, partly due to the dip in central grants, the CAG report on state finances, that was tabled in the assembly on Thursday, showed.
The state’s own tax revenue increased by 3.28% from Rs 71,968.16 crore in 2022-23 to Rs 74,329.01 crore in 2023-24. Non-tax revenue increased by 8.12% along with a 19.07% increase in the state’s share from central taxes and duties. However, grants-in aid from the Centre decreased by 55.92% -- from Rs 27,377.86 crore in 2022-23 to Rs 12,068.26 crore in 2023-24. The total revenue receipts, sum total of tax revenues, grants in aid and central tax share, declined 6.21% from Rs 1,32,724.65 crore to Rs 1,24,486.15 crore.
The report called for all-out efforts by the government to realise revenue arrears. “There were huge arrears of revenue amounting to Rs 24,462.50 crore as on 31 March 2024 pending collection of which Rs 6,880.85 crore was outstanding for more than five years,” it said. The revenue expenditure, on the other hand, posted a modest 0.48% growth, of Rs 675.41 crore, over 2022-23.
Analysing the previous five years, the report put the revenue expenditure’s annual growth rate at 8.03%. It rose from Rs 1,04,719.92 crore in 2019-20 to Rs 1,42,626.34 crore in 2023-24. The report also highlighted the issue of off-budget borrowings.
“The state government, through public sector undertakings, raised Rs 10,632.46 crore as off-budget borrowings, which did not flow into the consolidated fund of the state but are required to be repaid and serviced through budget”, it said. The outstanding liability was 37.84% of GSDP as against the limit of 33.70% prescribed in the Kerala Fiscal Responsibility Act, the report said.
Revenue Receipts
Year-on-year figures for 2023-24
Total revenue receipts down 6.21%
Own tax revenue rises 3.28%
Non-tax revenue up 8.12%
Share from central taxes jumps 19.07%
Grants-in aid from Centre drops 55.92%
Revenue expenditure inched up 0.48%
Source: CAG report on state finances