CSR funding: Corporate contributions in Kerala double in 5 years, touch record ₹616.57 crore
Fresh data released by the Union Government has revealed a significant surge in Corporate Social Responsibility (CSR) spending in Kerala, with the state recording its highest-ever expenditure in the last financial year. Figures presented in the Rajya Sabha show that corporate contributions in the state have more than doubled over a five-year period, rising from ₹290.67 crore in 2020-21 to ₹616.57 crore in 2024-25.
The disclosure came in response to questions raised by MP Shri Sandosh Kumar P regarding the allocation and monitoring of these funds. While the national CSR landscape is dominated by states such as Maharashtra and Gujarat, Kerala has maintained a steady upward trajectory, particularly in the social sector.
A five-year growth story in Kerala
The journey of corporate spending in Kerala has seen both fluctuations and a rapid recovery. In the 2020-21 financial year, the state received ₹290.67 crore, which dipped slightly to ₹241.58 crore the following year. However, the momentum shifted significantly from 2022 onwards. By 2022-23, spending had risen to ₹363.34 crore, followed by ₹399.47 crore in 2023-24, eventually peaking at ₹616.57 crore in the most recent financial year.
This growth mirrors a broader national trend. Across India, total CSR expenditure climbed from ₹26,210.95 crore in 2020-21 to ₹40,794 crore in 2024-25. Despite this substantial national pool, Kerala currently ranks in the middle among states and Union Territories for the 2024-25 period. By comparison, Maharashtra led the country with ₹8,630.80 crore, followed by Gujarat at ₹4,549.10 crore.
Health and education take centre stage
When looking at where the money goes within Kerala, two sectors stand out above the rest: healthcare and education. In the last financial year, companies invested ₹215.23 crore in health initiatives, a significant increase from the ₹110.91 crore spent four years earlier. Education followed closely behind, receiving ₹183.62 crore in 2024-25.
Other sectors have also attracted notable investment. Environmental sustainability projects received ₹50.48 crore, while rural development initiatives were allocated ₹36.77 crore. Interestingly, sectors such as "Senior Citizens Welfare" and "Vocational Skills" have seen gradual increases, though they remain small compared with the "big two" of health and education.
Corporate boards, not government, steering the wheel
The Union Government also addressed specific concerns raised by MP Sandosh Kumar P regarding whether these funds are being distributed fairly across Kerala's coastal and tribal districts. Minister of State for Corporate Affairs Harsh Malhotra clarified that the government does not directly control where a company spends its CSR budget.
Under the Companies Act, 2013, CSR is a "Board-driven process". This means a company's board has the authority to plan, decide and monitor projects based on the recommendations of its internal committee. Consequently, the Central Government does not issue specific directions requiring companies to spend in any particular district or region. Furthermore, there is no official government mechanism to compel companies operating in Kerala to keep their CSR spending strictly within the state's borders.