Thiruvananthapuram: Kerala has recorded a notable increase in GST revenue growth, outperforming the national average during the April-August 2026 period. According to the GST revenue analysis, Kerala’s cumulative post-settlement GST revenue grew by 21%, compared with a 16% national average.
Kerala’s total state GST revenue increased from ₹2,717 crore in August 2025 to ₹3,078 crore in August 2026, registering 13% year-on-year growth. Pre-settlement SGST revenue rose 12%, from ₹1,221 crore to ₹1,369 crore, while post-settlement SGST revenue, including the IGST share, increased from ₹2,803 crore to ₹3,268 crore, marking 17% growth.
21% Growth Between April and August
The cumulative April-August figures present an even stronger picture. Kerala’s pre-settlement SGST revenue increased from ₹6,511 crore to ₹7,489 crore, representing 15% growth.
During the same period, post-settlement revenue rose from ₹13,319 crore to ₹16,132 crore, resulting in a 21% increase. This was higher than the national average growth of 16%.
Economic Policies Under Debate
The revenue numbers have also brought renewed attention to the economic approach of Chief Minister V.D. Satheesan’s government. The government putting money into the hands of lower-income and socially vulnerable sections, ensuring timely welfare payments and strengthening purchasing power can help maintain circulation of money within the economy.
Measures such as increasing the remuneration of ASHA workers, ensuring timely social security pension payments and providing essential commodities through the public distribution system at reasonable prices are being viewed in this context.
Kerala’s 21% cumulative post-settlement GST growth, against the national average of 16%, marks a significant improvement in the state’s revenue performance. The key challenge now is to convert this revenue momentum into sustained, broad-based economic growth.
