Kerala’s GSDP loss of ₹1,56,041 cr in 2020-21 due to COVID-19 pandemic

The COVID-19 pandemic has inflicted a shock to the economic system and extreme stress on State funds, with Kerala’s economic system struggling a Gross State Domestic Product (GSDP) loss of ₹1,56,041 crore in 2020-21 in relation to Budget Estimate 2020-21.

The contraction in GSDP may have been extra extreme however for the financial stimulus of ₹20,000 crore introduced at an earlier stage of the pandemic in March 2020. This stimulus package deal focused essentially the most susceptible and likewise benefited your complete society and enormously diminished the impression of COVID-19 on GSDP.

This has been said in the 2021-22 Medium Term Fiscal Policy and Strategy Statement and Medium Term Fiscal Plan for 2021 to 2024 tabled in the Assembly by Minister of Finance K. N. Balagopal on Friday.

The lockdown impacted the State funds adversely particularly through the first quarter of 2020-21. With the gradual lifting of restrictions, the economic system regained progress momentum shut to pre-COVID-19 stage by the tip of the yr 2020-21. Assuming a better GSDP progress following an financial disaster after a pandemic, GSDP is projected at 6.6% in 2021-22 Budget Estimate.

State’s Own Tax Revenue is estimated to develop at 6.5% over the Budget Estimate 2020-21. Encouraging GST assortment is an indication of quicker financial restoration.

V-shaped restoration

The authorities is planning to shortly begin sectors like Tourism, MSME, Agriculture to guarantee a ‘V’-shaped restoration and generate employment. Capital Expenditure will probably be enhanced each by means of the KIIFB and Externally Aided Projects. Development and welfare measures will proceed. Health safety will probably be given prime precedence in view of COVID-19. Improvement of the standard of increased training will probably be given precedence.

State’s Own Tax Revenue is projected to develop at 14% in the ahead estimates interval. Non-tax income is projected to develop at 15%. Measures being taken in sand mining and quarrying will assist the State in the mop-up of Non-tax Revenue.

The share of Central Taxes is projected to develop at 15%. Revenue expenditure is estimated to develop at 7.5% and 9.3% respectively in the ahead estimated interval, which is reflective of the thrust given to Health, Education and Social Sector spending. Capital expenditure is estimated to develop at 14% and 12 % for the years 2022-23 and 2023-24 respectively.