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Statistics show Scotland in surplus
20/06/2008
The Scottish Government today published the Government Expenditure and Revenue Scotland report (GERS).
Including a geographical share of North Sea revenues, the GERS figures show Scotland with a current budget surplus in 2005-06 and 2006-07.
In 2006-07, Scotland's current surplus is estimated at £837 million, or 0.7 per cent of GDP. This compares with a UK deficit of £4.3 billion, or 0.3 per cent of GDP.
GERS also estimates Scotland's fiscal balance - which factors in capital and infrastructure investment for the nation's long term benefit. This also shows Scotland in a substantially stronger position than the UK as a whole. Compared to a UK deficit in 2006/07 of 2.3 per cent of GDP, the Scottish figure is 2.1 per cent - which equates to the OECD average.
Commenting on the publication, John Swinney, Cabinet Secretary for Finance and Sustainable Growth, said:
"The GERS analysis shows Scotland in surplus on the current budget in both 2005-06 and 2006-07.
"With a current budget surplus in 2006-07 of over £800 million - in the context of a UK deficit of over £4 billion - the flow of resources from Scotland to the rest of the UK is some £1.2 billion.
"This year's GERS publication has been informed by an updated and detailed analysis of North Sea revenues by Aberdeen University, enabling a geographical share to be allocated to Scotland's accounts.
"Indeed, as North Sea oil revenues soar, City accountancy firm Grant Thornton estimate that Scotland's surplus would now stand at some £4.4 billlion.
"GERS can only ever be an attempted snapshot of Scotland's finances as a devolved nation.
"With the full financial responsibilities of independence, we will have the ability to increase Scotland's wealth even further through policies designed to boost sustainable economic growth - with the benefits felt by families and households in all parts of our country.
"Scotland stands on a firm financial footing. And independence holds out the prospect of a flourishing and economically successful Scotland."