Finance Minister K.N. Balagopal presented the Kerala Budget for the 2025-26 fiscal in the State Legislative Assembly on Friday (February 7, 2025). The Minister said Kerala has stated that growth of tax and non-tax revenue increased to 17.4% during the tenure of this Government.
For the hike of revenue, the finance minister sincerely appreciates the tax payers and the officials. He also pointed increase the growth in SOTR to 15.8% during the tenure of from 2021-22 to 2024-25.
“The huge achievement in augmenting own tax revenue and non-tax revenue is the reason behind the positive change in the fiscal status of the State. This will be evident upon comparison of the previous periods from 2011-12 to 2015-16 and 2016-17 to 2020-21 with that of the period from 2021-22 to 2024-25 during the tenure of this Government.”, the FM said.
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It was stated that the ministry has sustained by augmenting own tax revenue, avoiding unnecessary expenses and prioritizing other expenses. The ministry also stated that they would be able to augment State’s own tax revenue which was Rs. 47,660 Crores in 2020-21 to Rs. 81,000 Crores by the end of the financial year 2024-25. This is an increase of 70% in four years. The total own revenue (tax + non-tax) of Kerala is increasing from Rs. 54,988 Crores to Rs. 1,03,240 Crores.
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Improved motor vehicle tax, excise duty, stamp duty, and GST collections all contributed to the revenue growth. The increased revenue from state-owned businesses, lotteries, mining royalties, and service fees is what’s causing the surge in non-tax revenue. Digital initiatives, AI-based tax monitoring, and improved tax administration all helped to improve compliance, which in turn raised tax income.
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