A recent audit report from the Comptroller and Auditor General (CAG) has brought to light the substantial revenue arrears owed to the Kerala government. As of March 31, 2024, the outstanding amount stood at a significant ₹24,462.50 crore. This critical finding was presented to the State Legislative Assembly on Thursday.
Encouragingly, this figure indicates an overall reduction in uncollected revenue compared to the previous fiscal year.
These arrears are spread across fourteen government departments, with a concerning ₹6,880.85 crore of the total amount being more than five years overdue.
The CAG report underscored the severity of these delays, stating, “The arrears of revenue indicate delayed realisation of revenue due to the government. It deprives the government of potential revenue receipts and ultimately affects the revenue deficit.” This highlights how uncollected funds impact the state’s financial health.
Breaking down the figures, the State Goods and Services Tax (GST) department accounts for the largest share of uncollected revenue, totaling ₹13,559.46 crore – a figure that has remained largely consistent with the previous year. Following closely behind is the Finance department, with ₹7,604.49 crore in outstanding interest receipts. The Registration department also faces significant arrears, amounting to ₹723.53 crore.
Several other key departments are also grappling with substantial revenue arrears. These include the Police department with ₹494.20 crore, the Land Revenue Commissionerate with ₹542.14 crore, the Forest department with ₹420.92 crore, Mining and Geology with ₹224 crore, and the Excise department with ₹303.50 crore.
This isn’t a new challenge for the Kerala government; the CAG has repeatedly raised concerns about these uncollected funds. Previous reports showed revenue arrears of ₹28,258.39 crore as of March 31, 2022, and ₹21,797.86 crore as of March 31, 2021. This historical trend suggests ongoing difficulties in effectively recovering these overdue amounts.
Despite the persistent challenge, the most recent CAG report for 2023-24 does highlight a positive development: a reduction in total arrears. The uncollected revenue, which was ₹27,902.45 crore on March 31, 2023, has now decreased to ₹24,462.50 crore by March 31, 2024.