Scotland spent £23.7 billion more on public services than it raised in taxes last year, according to the latest Scottish Government figures released today.
GERS (Government Expenditure and Revenue Scotland) figures show the public spending deficit was £12.6bn lower than the previous year.
The figure is 12.3 per cent of GDP, unlike the previous year where it stood at 22.4 per cent of GDP. The deficit for the United Kingdom as a whole was 6.1 per cent of GDP.
When North Sea oil revenue is removed, Scotland 's deficit increases to 15.7 per cent or £27.2bn.
According to statistics public sector income from taxes in Scotland was estimated at £73.8bn, which is eight per cent of the UK's revenue. Of the £73.8bn, £3.5bn was from North Sea oil while £70.3bn was non-North Sea revenue.
The latest report covered the 2021/22 tax year in Scotland and covered some spending by the UK and Scottish governments during the devastating coronavirus pandemic.
Before the pandemic the public deficit was 8.6 per cent of GDP or £15,1bn, however it more than doubled to £36.3bn in 2020.
Reacting to the figures Deputy First Minister and temporary Finance Secretary John Swinney claimed the "UK’s response to the cost crisis is being built on Scotland’s natural resources".
He said: "Today’s figures show Scotland’s fiscal position is recovering faster than the UK’s, with a huge fall in the annual deficit thanks to the largest increase in revenues on record.
"This is before the full impact of the rise in oil prices that we’ve seen more recently, which is likely to see Scotland’s deficit fall faster than the UK’s again next year, with oil and gas revenue set to grow to £13 billion this year.
"The figures also highlight how the UK’s response to the cost crisis is being built on Scotland’s natural resources, not least with its windfall tax on the North Sea.
"But even without North Sea receipts, the record revenue generated was sufficient to cover all day-to-day devolved spending as well as all social security spending in Scotland, including the state pension.
"GERS describes Scotland’s current fiscal position under current constitutional arrangements, with 74 per cent of revenue and 37 per cent of spending reserved to the UK Government – and we know Scotland’s economy is already suffering as a result of austerity and Brexit. In the first full financial year since Brexit, the GERS figures show the economic harm of leaving the EU is driving up borrowing in the UK and contributing to the UK deficit being one of the largest in Europe.
"Even in the midst of an energy crisis, the UK as a whole is benefiting from Scotland’s natural wealth – which is why Scotland can expect its deficit to fall further in the future."
'Focus on cost of living crisis'
Scottish Labour finance spokesperson Daniel Johnson urged the SNP to tackle the cost of living crisis instead of speaking about independence.
He said: "The focus of every politician in Scotland must be on tackling the cost of living crisis and today's GERS statistics plainly show how the people of Scotland benefit financially from our United Kingdom.
"The figures confirm, yet again, that Scotland has an increased level of public spend relative to its tax base. That gives fiscal room that is vitally needed as we tackle the cost of living crisis. Independence would require tax increases or spending cuts at a time when these actions would shatter households as their bills spiral.
"The devolution benefit of £2,184 per person in Scotland compared to the rest of the UK is vital in maintaining the public services upon which we all rely.
"For the SNP to put its constitutional obsession with tearing Scotland out of the U.K. before the economic security of the people of Scotland is reckless and dangerous. The last thing that Scots facing a cost of living crisis need is to shoulder the cost of separating from the U.K.
"It's time for all of Scotland's politicians to put the interests of the people of Scotland before their own constitutional obsessions."
While, Scottish Lib Dems leader Alex Cole-Hamilton said: "These figures confirm the importance of the UK economic partnership, especially at times of crisis.
"Protecting lives and livelihoods necessitated unprecedented levels of spending. The gap between tax and spend was humungous. The broad shoulders of the UK economy and a powerful central bank with financial muscle helped make that possible.
"We now need a Scottish Government that will put every penny to work helping people with the cost of living crisis and reducing the longest NHS waiting lists in history. Instead, ministers are fixated on breaking up the UK and repeating the mistakes of Brexit. They are taking people for granted."
Ross Greer, Scottish Greens finance spokesperson, said: "We are at a crossroads, facing the biggest social and environmental crises for generations. The decisions we make now will have consequences for years to come. That is why it should be Scotland making those decisions.
"With the powers of independence, Scotland could make better choices and take the action that is needed to build a fairer, greener and better recovery that works for people and the planet.
"Basic powers, like the ability to raise the minimum wage and make corporations pay their fair share of tax, would finally sit with the Scottish Government rather than cruel, incompetent and unaccountable Westminster governments that we did not vote for and cannot remove.
"The deficit is down and the record level of revenue collected in Scotland is enough to cover all of our day-to-day devolved spending and social security spending, including the state pension.
"GERS makes clear the vast natural resources that Scotland enjoys, but also the many ways that we are being held back by years of cuts, austerity and terrible economic decisions from Westminster.
"It is ordinary people who are being made to suffer from soaring prices on supermarket shelves and skyrocketing bills, all while the super-rich get even richer and corporations are allowed to just sit on the obscene profits they have collected at the public’s expense.
"Boris Johnson and his cronies know the impact of the choices they are making. They know that they are plunging hundreds of thousands of families into destitution and poverty, but they simply don’t care."
What is GERS?
GERS or Government Expenditure and Revenue Scotland is a report published every year by the Scottish Government.
Compiled by Scottish Government statisticians free from political interference the report estimates the difference between taxes raised in Scotland and what is spent on public services.
Its publication leads to angry clashes around the independence question with Unionists and Nationalists weighing into the debate.
Unionists argue that the huge deficit shows the benefits of Scotland staying in the UK, while Nationalists say the figure does not reflect the choices that would be made in an independent Scotland.
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