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Government Expenditure and Revenue in Scotland 2001-2002
Executive Summary
- This report provides an analysis of the public finances in Scotland, focusing on the expenditure and revenue sides of Net Borrowing (NB). Special attention is given to 2001-02, the latest fiscal year for which outturns of expenditure and revenue are available for Scotland.
- In 2001-02, total expenditure for Scotland is estimated at 39.4 billion, or 10.1 per cent of the UK total. For reference, Scotland's population share in 2001 was 8.6 per cent and its share of UK Gross Value Added (GVA, or GDP at basic prices) was 8.1 per cent.
- "Identifiable" government expenditure in Scotland (that is, spending specifically incurred on behalf of the residents of Scotland) was 31.6 billion, or 10.3 per cent of the corresponding UK total. "Non-identifiable" expenditure (defined as Scotland's share of public spending that is generally incurred on behalf of the UK) was estimated at 4.0 billion, or 8.6 per cent of the UK amount. "Other" expenditure (including central government debt interest) was 3.8 billion, or 10.1 per cent of the UK total.
- In 2001-02, total receipts (excluding North Sea revenues) in Scotland are estimated at 31.4 billion, equivalent to 8.2 per cent of total UK receipts (excluding North Sea revenues).
- The Net Borrowing attributable to Scotland is the estimate of the extent to which expenditure for Scotland exceeds receipts for Scotland. It was calculated at 8.1 billion in 2001-02 (excluding North Sea revenues), equivalent to around 10.3 per cent of Scottish GDP (excluding North Sea output). In the same year, the equivalent UK ratio was 0.6 per cent. Section 9 provides estimates from 1997-98 to 2001-02.
- Calculations in Section 8 show the effect of allocating different levels of North Sea revenues to Scotland. For example, in the event of all North Sea revenue and output being attributed to Scotland, the 2001-02 Net Borrowing figure would be 2.9 billion, or 2.8 per cent of "Scottish" GDP (including North Sea output).
- The calculations required to derive Net Borrowing for Scotland involve the estimation of expenditure and revenue items. Therefore the Net Borrowing estimates presented in this report are subject to some statistical uncertainty.
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