The secondary sector has remained stagnant while the primary sector, which includes agriculture, showed a declining trend
The Gross State Domestic Product (GSDP) of Kerala (at 2004-05 constant prices) grew by 9.13 per cent in 2010-11, driven by robust performance of the tertiary sector, according to the Economic Review for 2011, released here on Saturday.
Finance Minister K.M. Mani released the review at a press conference after presenting a copy each to Speaker G. Karthikeyan and the MLAs, ahead of the budget presentation scheduled for Monday.
The GSDP growth in 2010-11 is more than the growth of 8.95 per cent recorded in 2009-10.
The tertiary sector grew by 11.57 per cent in 2010-11, while the secondary sector grew by 6.12 per cent, and the primary sector by a mere 0.64 per cent.
Tourism and other areas in the tertiary sector performed well; the performance of industries and allied sectors were modestly satisfactory; but agriculture and allied sectors continued to be a cause of concern.
The contribution from primary, secondary, and tertiary sectors to the GSDP was 11.06 per cent, 20.13 per cent, and 68.80 per cent respectively. The contribution from tertiary sector had been steadily increasing in the recent years, while that from secondary sector had been remaining stagnant, and that from primary sector decreasing.
Unemployment continues to be one of the basic problems of the State, with 43.42 lakh job-seekers in the live register of the employment exchanges, the review said.
Global economic crisis had adversely affected the tourism industry in the State in 2009-10, but the situation improved significantly in 2010-11, with foreign tourist arrivals increasing by 18.31 per cent compared to the previous year.
Though imbalances continued to prevail in the State's finances, there were ‘hopeful signs of recovery' in 2010-11, the review said. Revenue deficit, which stood at Rs.2,638 crore in 2006-07 and rose to Rs.5,023 crore in 2009-10, came down to Rs.3,674 crore in 2010-11, which came to 1.38 per cent of the GSDP.
This improvement was due to a growth of 18.70 per cent in revenue receipts in 2010-11 against an increase of only 11.3 per cent in revenue expenditure.
However, the moderate growth in revenue expenditure in 2010-11 was also on account of the deferment of a major portion of expenditure by way of pay and pension revisions due in 2009-10 to 2011-12, the review said. Therefore, these indicators would paint a different picture in 2011-12.
Fiscal deficit touched the level of Rs.7,731 crore in 2010-11. This came to 1.81 per cent of the GSDP.
The ratio of revenue deficit to fiscal deficit, which indicates the extent to which borrowed funds are used for financing revenue expenditure, has been showing a declining trend since 2004-05. The ratio, which was 74.83 per cent in 2005-06, has come down steeply to 47.52 per cent in 2010-11.
Debts increased by 10.86 per cent in 2010-11, reaching the level of Rs.78,673 crore.