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What is the story about?
Barely six months after the UDF government came to power, Keralam has recorded a 16.54% growth in its own tax revenue and a 28% increase in GST revenue so far in October, without raising taxes, Chief Minister V D Satheesan told the state Assembly on Tuesday.
Replying to the discussion on supplementary demands for grants, Satheesan said the state’s own non-tax revenue had grown by 71.96%, while total revenue receipts had increased by around ₹20,000 crore, or 21.12%, compared with the corresponding period of the previous year.
According to the provisional figures of the Accountant General up to September 2026, the state’s own tax revenue increased by Rs 6,486 crore, while non-tax revenue rose by ₹4,295 crore, he said.
GST revenue grew by 19% up to September compared with the same period last year. The growth rate rose to 28 per cent in October so far, against a decline of 2% in October 2025, he said.
”We have developed the confidence that revenue can be increased without raising taxes,” Satheesan said, adding that the government was working to increase the state’s income and clear arrears left by the previous government.
He said capital expenditure, which refers to spending on assets and infrastructure, had increased by ₹4,217 crore, or 57%, compared with the corresponding period of the previous year.
The government had also ensured that social security pensions, salaries and pensions of government employees and other welfare payments continued without interruption, he said. The state had announced the dearness allowance and dearness relief increases declared by the Centre, he added.
However, the government was not satisfied with the progress made so far and wanted to increase revenue further by plugging gaps in tax collection.
”There are many loopholes. There are many leakages in tax revenue,” Satheesan said, stressing that the money collected from people as taxes should be spent for their benefit.
Defending the government’s decision to release funds during the Onam season despite the financial crisis, he said the move had helped bring more money into the market and increase business activity.
”That was a successful experiment. We will repeat it,” he said.
Satheesan said the government had provided money to poor people, ordinary families and the middle class during Onam to boost spending. The resulting increase in wholesale and retail trade would help the government collect more taxes as the money continued to circulate in the economy, he said.
The Chief Minister said the government had followed the Keynesian economic approach of increasing public spending during a crisis to stimulate demand and economic activity.
He said the government would now focus on attracting foreign direct investment and investment from other parts of the country to set up new enterprises and create more economic activity.
Satheesan assured the Assembly that the government’s efforts over the past five and a half months would begin to show results as it completes six months in office on November 18.
”There will be investments in this state. New enterprises will come up in this state,” he said, adding that these investments and businesses would help the state’s economy grow.
Replying to the discussion on supplementary demands for grants, Satheesan said the state’s own non-tax revenue had grown by 71.96%, while total revenue receipts had increased by around ₹20,000 crore, or 21.12%, compared with the corresponding period of the previous year.
According to the provisional figures of the Accountant General up to September 2026, the state’s own tax revenue increased by Rs 6,486 crore, while non-tax revenue rose by ₹4,295 crore, he said.
GST revenue grew by 19% up to September compared with the same period last year. The growth rate rose to 28 per cent in October so far, against a decline of 2% in October 2025, he said.
”We have developed the confidence that revenue can be increased without raising taxes,” Satheesan said, adding that the government was working to increase the state’s income and clear arrears left by the previous government.
He said capital expenditure, which refers to spending on assets and infrastructure, had increased by ₹4,217 crore, or 57%, compared with the corresponding period of the previous year.
The government had also ensured that social security pensions, salaries and pensions of government employees and other welfare payments continued without interruption, he said. The state had announced the dearness allowance and dearness relief increases declared by the Centre, he added.
However, the government was not satisfied with the progress made so far and wanted to increase revenue further by plugging gaps in tax collection.
”There are many loopholes. There are many leakages in tax revenue,” Satheesan said, stressing that the money collected from people as taxes should be spent for their benefit.
Defending the government’s decision to release funds during the Onam season despite the financial crisis, he said the move had helped bring more money into the market and increase business activity.
”That was a successful experiment. We will repeat it,” he said.
Satheesan said the government had provided money to poor people, ordinary families and the middle class during Onam to boost spending. The resulting increase in wholesale and retail trade would help the government collect more taxes as the money continued to circulate in the economy, he said.
The Chief Minister said the government had followed the Keynesian economic approach of increasing public spending during a crisis to stimulate demand and economic activity.
He said the government would now focus on attracting foreign direct investment and investment from other parts of the country to set up new enterprises and create more economic activity.
Satheesan assured the Assembly that the government’s efforts over the past five and a half months would begin to show results as it completes six months in office on November 18.
”There will be investments in this state. New enterprises will come up in this state,” he said, adding that these investments and businesses would help the state’s economy grow.
