An Economic Analysis of GDP and Per Capita Income in Kerala State

Abstract

Government expenditure as a tool of fiscal policy can have profound influence on the stabilisation and economic growth depending upon its utilisation pattern and management by the government. Contrasts to the standard presumption that public expenditure supports the growth objective, evidences showed that it may have desirable as well as undesirable effects on the economy. The main objectives of the study is to analyze the rate of growth of real per capita government expenditure in India and Kerala During the second half of the present decade, the plan expenditure was less than that of All States. But during 2009-10 and 2010-11, the per capita approved plan outlay of Kerala (not actual expenditure) was more than that of All States.