By P. Sreekumaran
THIRUVANANTHAPURAM: Kerala’s economy posted a strong recovery in 2021-22. Growth rate of Gross State Domestic Product (GSDP), at constant (2011-12) prices increased from (-) 8.43 percent in 2020-21(P) to 12.01 per cent in 2021-22(Q).This is the fastest growth since 2012-13. Indian economy grew by 8.7percent in 2021-22 (P). The stimulus packages, along with other pro-active policy interventions of the State Government, augmented growth, particularly at a time when economic activities were severely constrained.
The sectoral composition of Gross State Domestic Product reveals positive developments across sectors. Primary, Secondary and tertiary sectors grew by 4.16 percent, 3.9 per cent and 17.3 percent respectively in 2021-22(Q) over 2020-21. This was a very creditable record, particularly in the light of the fact that in the preceding years the sectors recorded negative growth.
The growth rate in primary sector at constant prices increased from 0.79 per cent in 2020-21 to4.16 per cent in 2021-22, mainly because of the increase in production of some crops, livestock, fishing and aquaculture.
Agriculture and allied activities growth increased from 0.24 per cent in 2020-21 to 4.64 percent in 2021-22. This is higher than the 3 per cent growth in 2021-22 (P) recorded at the national level. Fishing and Aquaculture and Crop sectors registered positive growth of 30.1 percent and 3.63 per cent respectively in 2021-22.
Industry sector grew by 3.9 per cent in 2021-22 (Q) compared to (-) 2.82 percent in 2020-21. Sub sectors of industry sector such as manufacturing (3.63%) and construction (2.4%) shown positive growth in 2021-22. Increase in growth in construction sector is primarily due to the relaxation of Covid-19 restrictions in service sectors as well as in financial services in 2021-22.
Service sector posted a robust growth rate of 17.3 per cent in 2021-22 (Q) as against the (-) 14.44 percent in 2020-21. This is due to the increased growth of particular sub-sectors of tertiary sector which include trade, repair, hotels and restaurants, road transport, air transport, and water transport.
The Cash Deposit ratio of public sector banks in Kerala increased to 65.85 per cent in March 2022 from 64.74 per cent in March 2021.
Revenue Deficit as a per cent to GSDP for 2021-22 is2.29 per cent as against 2.51 per cent in 2020-21. Similarly, Fiscal Deficit as a per cent to GSDP improved to 4.11 per cent in 2021-22 from 4.57 per cent in 2020-21.
The growth rate of State’s Own Tax Revenue of Kerala in 2021-22 was 22.41 per cent. The high growth rate is mainly because of the growth in GST, Sales Tax and VAT.
Outstanding public debt of the State at the end of 2021-22 was Rs.219974.54 crore. The annual growth rate of public debt decreased to 10.16 per cent in 2021-22 from 14.34 per cent in 2020-21. The public debt – GSDP ratio decreased to 24.26 per cent in 2021-22 from 25.90 per cent in 2020-21. The total outstanding liabilities of the State is at 37 per cent in 2021-22, which was 37.13 per cent in 2020-21. Kerala’s efforts to improve its finances through the fiscal consolidation path have been jolted by a series of setbacks in realms beyond the control of the State Government. Mobilisation of additional revenue and prioritizing expenditure assume significant importance in the way forward towards fiscal consolidation.
The Government of Kerala is committed to infrastructural development in the State and the share of Government spending on capital projects in various sectors has increased during the recent years. The capital expenditure of the State in 2021-22 was ₹17,046.02 crore and in 2020-21 it was ₹15,438.16 crore.
According to live register of employment exchanges in Kerala, the total number of job seekers as on July, 2022 is 28.4 lakh while it was 34.9 lakh in December 31, 2015.
During the financial year 2021-22, PSUs under industries Department reported a turnover of ₹3892.14 crore, with an operating profit of ₹386.03 crore. The turnover has increased by 17.8 per cent compared to previous year.
Government of Kerala decided to celebrate 2022-23 as a “Year of Enterprises” to encourage and promote Micro, Small and Medium level entrepreneurs in the State. The Government was able to achieve the ambitious target of commencing one lakh new enterprises within a remarkable period of 250 days from 1st of April to 7th of December 2022. As part of this achievement, an investment of ₹6,274 crore and 2, 20,285 new employment opportunities were created in the state. Around one-third of these newly formed enterprises are promoted by women entrepreneurs.
In school education, Government has been giving emphasis on improvement in the quality of school infrastructure. There is increase in enrolment, i.e. the total number of new students sought admission in government and aided schools for the last five years is 8,16,929.
Government has taken progressive steps on the development of inclusive education. Free uniform, mid-day meal, financial assistance for meeting the expenses towards travelling, hostel facilities, and excursion for students etc are also provided to promote them. Apart from this, to ensure an all-inclusive education, KITE developed Audio Books for visually challenged and sign adapted classes for hearing impaired students of Class 10 and 12.
In Public healthcare, the Government focus is on providing accessible, equitable, affordable, and quality healthcare services for all. Kerala is at the top of the table with respect to indicators of health. Kerala is the only bigger State in India with a single digit Infant Mortality Rate (IMR) of 6, whereas it is 28 at all India level. The State has the lowest MMR (19) among the States whereas MMR at national level is 97. Life Expectancy at birth in the State is at 75 higher than national level (70).
Aardram Mission programme launched for development of health infrastructure. Under e-Health Project, Kerala emerged as the only State in the country where the data base of 2,59,55,975 people has been collected and stored as electronic records. This includes 68,34,845 houses, 1,26,83,841 males, 1,32,71,318 females and 816 transgender
This year’s theme chapter is on entitled “Higher Education for Growth and Development:. The.” Improvements in higher education are a pre-requisite for the development of the State into a knowledge society as envisioned by the Government. The Government of Kerala has taken multiple initiatives to enhance academic standards, increase the enrolment ratio, and provide young people with state-of-the-art facilities in sphere of higher education. (IPA Service)
