Kerala, a world model in human development index: Minister Balagopal 

Kerala is at the forefront of Human Development Index despite having lower incomes than the richest countries in the world, said the State Finance Minister, K.N.Balagopal.

Kerala model is a world model of human development and the State is characterised by a model of considering everyone in public development. It is ahead of the United States in terms of infant mortality rate, the Minister said at the state-level seminar – Kerala @2031: A New Vision.

The State’s per capita income, which was 30 per cent lower than the Indian average earlier, is now 50-60 per cent. Kerala is one of the States with the highest per capita income. The speciality is that the wealth of the State is not concentrated in one city, and the facilities are distributed a little more. Most of the money was spent on education and health. This priority shows that 50 per cent of the salaries spent by the State government are on teachers and health workers, the Minister said.

The NRI contributes about 23 per cent of Kerala’s GSTP. The State accounts for a large share of India’s total expatriate income. This has helped a lot in investment in the State. However, new situations, such as the increase in visa fees, raise concerns about the future of exile.

Elaborating on the economic challenges, the Minister said the financial balance between the Central and State governments has varied after the implementation of GST. The State may suffer a shortfall of around ₹8,000 crore to ₹10,000 crore due to this tax shortfall.

Besides, Kerala has been affected by the decline in the share of funds given by the Centre to the States as per the Fifteenth Finance Commission. Earlier, during the 14th Finance Commission, it was ₹3.80 which has now come down to ₹1.92 (for every ₹100). This reduction results in a loss of up to ₹27,000 crore annually. With the enactment of laws like GST, the tax revenue of the States has decreased, he added

The Minister also clarified that the State government has not cut down on development works and public expenditure in all adverse circumstances. This year, the State’s personal income is approaching ₹1 lakh crore. In this way, the development and welfare activities are being carried out without any shortage by increasing the personal tax and non-tax revenue on a large scale.

Published on October 13, 2025