73.4 per cent of Kerala's revenue spent on salaries, pensions, debt repayments: CAG report

Thiruvananthapuram: A report by the Comptroller and Auditor General (CAG) has revealed that three-fourths of the state's revenue is spent on salaries, pensions, and interest payments on debts. According to the report, which was submitted to the state legislature today, 73.4% of the revenue generated is used for paying employee salaries, pensions, and servicing debt interest.

Kerala joins Tamil Nadu urging Centre to withdraw UGC draft regulations, assembly passes resolution

For the fiscal year 2023-24, Kerala's total revenue income is Rs 1,24,486 crore, with a revenue deficit of Rs 18,140 crore. Of this, the government spent Rs 38,573 crore on employee salaries alone, and Rs 27,106 crore on pensions. In a state with a population of 3.4 crore, around 10 lakh government employees and pensioners account for 53% of the total revenue expenditure.

Economic experts have identified the prolonged high expenditure ratio as a major cause of Kerala's ongoing financial crisis. Of the state's total revenue income, 41% comes from tax revenues, while 7% is from non-tax sources, and 5% from various grants. The remaining portion of the revenue is derived from loans and investments.

The central government's strict control over borrowing has significantly reduced the state's ability to take loans as planned in the budget. While the budget had targeted a borrowing of Rs 51,856 crore last year, the state was only able to borrow Rs 35,020 crore.

Kerala: Four CPI(M) workers arrested for abducting woman councillor of Koothattukulam Municipality

For more reliable and latest news subscribe to Asianet Newsable WhatsApp channel by clicking here.

• Kerala financial crisis
• CAG Report
• Kerala news
• Kerala CAG report