Kerala achieves a record capital expenditure of 13.97% of total spending in the fiscal year 2023-24, a substantial increase from 7.65% in 2016-17, despite financial constraints. The State Planning Board reveals that Kerala’s capital expenditure has surged by 142% over the past seven years, rising from Rs 10,126 crore in 2016-17 to Rs 24,606 crore in 2023-24. The capital expenditure-to-state gross domestic product (SGDP) ratio has also seen growth, reaching 2.17% in 2023-24 compared to 1.64% in 2016-17, peaking at 2.49% in 2021-22.
Dr K Raviraman, a member of the Kerala State Planning Board, emphasizes the high investment in infrastructure in Kerala, spanning not only roads and bridges but also water navigation, telecommunications, ports, and metro rail projects. The increased capital expenditures are expected to have a significant multiplier effect, translating into income generation for the people and the government. The state has directed substantial investments into industries, agriculture, and human resources, fostering economic development.
Krishnakumar K K, a senior fellow at the Centre for Socio-economic and Environmental Studies, notes that Kerala’s focus on upgrading schools and hospitals, along with support for National Highway projects, has contributed to the positive economic impact. The state’s efforts in infrastructure development, coupled with investments by the Kerala Infrastructure Investment Fund Board (KIIFB), have played a crucial role in overcoming financial constraints and driving economic growth.
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