Government budget and revenue in Kerala, India: official figures
The state government budgeted ₹64,950 crore for social sectors such as education, health, housing and welfare in 2024-25, and expected ₹84,884 crore from its own taxes (budget estimate).
How much tax does the Kerala government raise?
Its own tax revenue works out at about ₹23,600 per resident in 2024-25 (10th highest of 31 with figures), and it expected a further ₹18,356 crore of non-tax revenue such as mining royalties, fees and dividends. The rest of its income comes from its share of central taxes, central grants and borrowing.
Source: Reserve Bank of India · saved copyHow much does the Kerala government borrow?
The state government planned to borrow ₹44,529 crore to cover its fiscal deficit in 2024-25, 3.6% of its GSDP (budget estimate; 11th highest of 25 with figures). The usual ceiling for states under fiscal responsibility rules is about 3%.
Source: Reserve Bank of India · saved copyHow much debt does the Kerala government have?
The state government owed ₹4.71 lakh crore at the end of March 2025, equal to 37.7% of its 2024-25 GSDP and about ₹130,500 per resident; 6th highest of 25 with figures. All states and UTs together owed ₹93.93 lakh crore.
Source: Reserve Bank of India · saved copyHow much does the Kerala government spend on interest and pensions?
Interest on past borrowing takes 17.2% of the state's day-to-day (revenue) spending of ₹1.67 lakh crore in the 2024-25 budget (all states and UTs: 11.9%; 4th highest of 31 with figures), and pensions for retired staff another 17.2%.
Source: Reserve Bank of India · saved copyHow Kerala compares with other states
State government debt (outstanding liabilities) as % of GSDP (March 2025)
Kerala ranks 6 of 25, highest first. Outstanding liabilities at end-March 2025 divided by gross state domestic product for 2024-25.
| Rank | Region | State government debt (outstanding liabilities) as % of GSDP |
|---|---|---|
| 3 | Himachal Pradesh | 44.3% |
| 4 | West Bengal | 39.3% |
| 5 | Meghalaya | 38.8% |
| 6 | Kerala | 37.7% |
| 7 | Rajasthan | 37.4% |
| 8 | Bihar | 36.4% |
| 9 | Andhra Pradesh | 35.3% |
Budgeted fiscal deficit as % of GSDP (2024-25 (budget))
Kerala ranks 11 of 25, highest first.
| Rank | Region | Budgeted fiscal deficit as % of GSDP |
|---|---|---|
| 8 | West Bengal | 3.8% |
| 9 | Odisha | 3.6% |
| 10 | Punjab | 3.6% |
| 11 | Kerala | 3.6% |
| 12 | Assam | 3.5% |
| 13 | Tamil Nadu | 3.5% |
| 14 | Jammu and Kashmir | 3.4% |
Interest payments as % of revenue spending (2024-25 (budget))
Kerala ranks 4 of 31, highest first. Interest on past borrowing divided by revenue (day-to-day) expenditure, budget estimates.
| Rank | Region | Interest payments as % of revenue spending |
|---|---|---|
| 1 | Punjab | 18.8% |
| 2 | Haryana | 18.7% |
| 3 | Tamil Nadu | 17.9% |
| 4 | Kerala | 17.2% |
| 5 | West Bengal | 16.9% |
| 6 | Gujarat | 13.6% |
| 7 | Karnataka | 13.5% |
More on Kerala: overview · economy and jobs · health · education and schools · India
Sources
- Reserve Bank of India: Handbook of Statistics on Indian States 2024-25, Table 176: State-wise Composition of Outstanding Liabilities, read 23 October 2026 · saved copy (SHA-256 df4d117b3949…)
- Reserve Bank of India: Handbook of Statistics on Indian States 2024-25, Table 164: State-wise Gross Fiscal Deficit, read 23 October 2026 · saved copy (SHA-256 5e1a742f710e…)
- Reserve Bank of India: Handbook of Statistics on Indian States 2024-25, Table 170: State-wise Interest Payments, read 23 October 2026 · saved copy (SHA-256 615f96758e43…)
- Reserve Bank of India: Handbook of Statistics on Indian States 2024-25, Table 168: State-wise Own Tax Revenue, read 23 October 2026 · saved copy (SHA-256 b25a8b6f2ff7…)
- Reserve Bank of India: Handbook of Statistics on Indian States 2024-25, Table 175: State-wise Social Sector Expenditure, read 23 October 2026 · saved copy (SHA-256 6b8f611c50f5…)
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