Kerala’s growth is higher than the all-India growth rate, according to the Economic Review 2019 tabled by Finance Minister Thomas Isaac in the Assembly on Thursday. Kerala’s Gross State Domestic Product (GSDP) at constant prices (2011-12) registered a growth rate of 7.5 per cent in 2018-19 compared to 7.3 per cent in 2017-18.
Gross State Domestic Product (GSDP) is defined in monetary terms, as the volume of all goods and services produced within the state limits during a given period of time, and which is accounted for without duplication.
The Economic Review was tabled ahead of the state budget to be presented on Friday, February 7. At current prices, the GSDP grew at 11.4 per cent in 2018-19 as against 10.5 per cent in 2017-18.
The Gross State Value Added (GSVA) growth rate at constant prices (2011-12) was 7.5 per cent in 2018-19, higher than 6.8 per cent in 2017-18. At current prices, the growth of GSVA was 10.5 per cent in 2018-19 as against 11.1 per cent in 2017-18.
Gross state value added (GSVA) is a metric that measures the contribution of a corporate subsidiary, company or municipality to an economy, producer, sector or region within state limits.
The all-India GDP growth at constant prices in 2018-19 was 6.8 per cent and at current prices was 11.2 per cent. The GVA growth at constant prices was 6.6 per cent and at current prices was 11.1 per cent.
According to estimates for 2018-19, per capita income of Kerala is Rs 1,48,078. The corresponding national average (for 2018-19) is Rs 93,655. This implies that average income per person in Kerala was approximately 1.6 times that of an Indian in 2018-19.
In 2018-19, the contribution from primary, secondary and tertiary sectors to the GSVA at constant prices (2011-12) was 9.3 per cent, 28.1 per cent and 62.6 per cent respectively. At current prices, the primary, secondary and tertiary sectors contributed 11.11 per cent, 25.2 per cent, and 63.7 per cent respectively to the GSVA.
The contribution of secondary sector and tertiary sector has improved from 2017-18 levels. In 2017-18, the contribution from secondary sector was 27.7 per cent at constant prices and 25 per cent at current prices. The contribution from tertiary sector was 62.1 per cent at constant prices and 62.7 per cent at current prices.
Among the sectors, the highest growth was recorded in the secondary sector with 8.8 per cent at constant (2011-12) prices followed by tertiary sector (8.4 per cent), mainly due to a spurt in the manufacturing sector. At current prices, the tertiary sector grew at 12.4 per cent, secondary sector at 11.4 per cent and the primary sector at 0.6 per cent.
Revenue Deficit and Fiscal Deficit
Revenue Deficit and Fiscal Deficit of the state in 2018-19 have decreased to 2.23 per cent and 3.45 per cent respectively from 2.41 per cent and 3.83 per cent in 2017-18.
In 2018-19, out of the total revenue receipts, contribution of state’s own taxes was 54.54 per cent. The share of central taxes was 20.50 per cent, state’s own non-tax revenue was 12.69 per cent and grants in aid received from the Centre was 12.27 per cent.
The agriculture and allied sector growth declined to (-) 0.5 per cent during 2018-19 from a growth rate of 1.7 per cent in 2017-18.
Agricultural Credit Flow
There has been an increase in agriculture credit flow from ₹54,270 crore in 2016-17 to ₹67,089 crore in 2017-18 and to ₹71,632 crore in 2018-19. The share of investment credit has increased to 37.7 per cent of the total credit from 14.03 cent in the beginning of the 12th Plan period.