Despite grappling with financial constraints and adversities, Kerala’s economy demonstrated resilience by achieving a growth rate of 6.6% in the fiscal year 2022-23, surpassing the national average of 5.9%, as reported in the Economic Review presented in the assembly on Friday. The state’s Gross State Domestic Product (GSDP) at constant prices rose from Rs 5,78,05,727 lakh (Provisional Estimate) in 2021-22 to Rs 6,16,18,850 lakh (Quick Estimate) in 2022-23, marking a notable growth. The previous fiscal year had witnessed the highest growth rate of the decade at 13%, primarily influenced by the economic impact of the Covid-19 pandemic in 2020-21.
Sector-wise breakdowns revealed positive growth across the primary sector (1.45%), secondary sector (7.72%), and services sector (6.21%) in 2022-23. One significant achievement for the state government was the reduction in revenue and fiscal deficits. The revenue deficit decreased from 2.23% of the GSDP in the previous year to 0.88% in 2022-23, while the fiscal deficit declined from 3.99% to 2.44%. Moreover, the State’s Own Tax Revenue and State’s Own Non-Tax Revenue witnessed increases of 23.36% and 44.5%, respectively, in 2022-23, contributing to a 13.79% growth in total receipts. However, the share of Central Taxes and Grants experienced a negative growth of 4.6% in the same period.
In terms of fiscal health, the outstanding public debt stood at Rs 2.38 lakh crore in 2022-23, with a decrease in the public debt-GSDP ratio from 23.54% in 2021-22 to 22.75% in the latest fiscal year. These economic indicators underscore the state’s efforts to manage fiscal challenges and promote overall financial stability.
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