Thiruvananthapuram, June 4 -- The White Paper on Keralam finances, tabled in the state's legislative assembly on Thursday, painted a grim picture of the state's fiscal health, stating that the new United Democratic Front (UDF) government inherited a severe financial crisis marked by mounting debt, rising liabilities and persistent treasury stress.

The major findings in the financial report revealed that Keralam's total public debt has reached Rs 5.07 lakh crore, while nearly 77 per cent of the state's revenue is being spent on committed expenditures such as salaries, pensions and interest payments, leaving limited fiscal space for developmental activities.

The report noted that capital expenditure on development remains among the lowest...