This item was published during the term of a previous administration that ended in April 2007
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End Year Flexibility 2005-06
28/06/2006
A total underspend of £235 million on a public sector budget of £26.5 billion was reported to the Scottish Parliament today.
The underspend, known as End Year Flexibility (EYF), represents 0.9 per cent of the total budget, and compares with an EYF figure that was almost £50 million higher last year and which peaked at £700 million in 2001.
The Executive spent £171 million less than the budget approved by Parliament in the Spring budget revision, while arms-length bodies such as Health Boards and Scottish Water spent £64 million less than their approved budgets.
In a statement to the Parliament, Finance Minister Tom McCabe said:
"This is the lowest ever level of underspend since devolution. And these resources are not lost to Scotland. They will be carried foward into this financial year where they can be approved for again by the Parliament.
"By effectively managing within last year's budget and having the ability to carry forward resources from last year into this year via EYF, we can deliver more."
A Spending Review originally planned for this year has been delayed until 2007, when the Executive's spending plans up to 2011 will be set out.
Mr McCabe said:
"Since devolution public spending in Scotland has been growing at an exceptional rate.
"It is unrealistic to expect this to continue indefinitely, but it is entirely realistic to expect the 2007 Spending Review to consolidate the progress we have made."