According to reports, in the last five years, there is a huge growth in income in Kerala. Annual growth in tax revenue is just two percent. In this regard, Kerala is the last among the major states of the country.
The disclosure is in a report prepared by the finance department based on the revenue and tax collections from 2016-’17 to 2020-’21 and the Reserve Bank’s budget review. The report pointing to the fall in tax collection during the first Pinarayi government has not been made public.
Although floods and Covid have affected tax collection, the finance department is of the opinion that the abnormal shortfall of five years is a danger sign. To solve this, there will be proposals to increase tax revenue in the budget.
Revenue income is the income that does not incur any other liability to the government. This amount includes tax and non-tax income. From 2016-’17 to 2020-’21, Kerala’s revenue income growth is only 6.3 percent. While the national average is 8.1 percent, Kerala is even lower than that, indicate stastics.