Five states of South India are playing an important role in the pace of the country’s economy. The per capita income in these states is also higher than the national average and they continue to be the engine of growth of India’s economy.
Per capita income
Let us also know the figures of per capita income, state debt, tax revenue, interest payment ratio and fiscal deficit of the states with India's strongest economy. Telangana topped in FY22 on the per capita income front. Telangana recorded the highest per capita income of Rs 2,75,443. Karnataka ranks second with Rs 2,65,623. After this, Tamil Nadu is at number three with Rs 2,41,131, Kerala at number four with Rs 2,30,601 and Andhra Pradesh at number five with Rs 2,07,771. The per capita income of all these states is more than the national average of Rs 1,50,007.
Lowest debt state
If we look at the data on debt to GSDP ratio of states, Telangana has the lowest debt to GSDP ratio of 25.3 per cent among the five major South Indian states. It is followed by Karnataka (27.5 per cent), Tamil Nadu (27.7 per cent), Andhra Pradesh (32.8 per cent) and Kerala (37.2 per cent) in the list.
Who is ahead on the front of tax revenue
In FY22, Tamil Nadu is at the top on the tax revenue front of the states. The Budget Estimate (BE) shows that Tamil Nadu has topped the list with the highest tax revenue of Rs 1,26,644 crore. It is followed by Karnataka (Rs 1,11,494 crore). The tax revenue of Telangana is Rs 92,910 crore, Andhra Pradesh Rs 85,265 crore and Kerala Rs 71,833 crore. Higher tax revenue indicates that the state can spend more on improving infrastructure, health and education.
Gross Fiscal Deficit
A low fiscal deficit ratio reflects the economic strength of the state, as the government has to borrow less money to meet the state's expenses. Karnataka is number one in this matter. Its fiscal deficit is the lowest (2.8 percent). It is followed by Andhra Pradesh (3.2 percent), Tamil Nadu (3.8 percent), Telangana (3.9 percent). Kerala ranks last with a fiscal deficit of 4.2 per cent.
Interest payment in proportion to revenue receipts
Interest Payments to Revenue Receipts ratio gives an indication of how much money is needed to repay the loan. Because if the interest payment is high then the state has less money to spend on development works.
In this case, Telangana (11.3 percent) has the lowest interest payment ratio among the states of South India. It is followed by Karnataka (14.3 percent), Andhra Pradesh (14.3 percent), Kerala (18.8 percent) and Tamil Nadu (21 percent) at the fifth position. There is a tough competition between these five South Indian states. Whereas, Telangana and Karnataka are top performers on most economic parameters. The other three states are also not far behind. All these states are the engines of economic progress of the country.
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