Government Expenditure and Revenue Scotland 2009-2010

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EXECUTIVE SUMMARY

  • Government Expenditure and Revenue Scotland ( GERS) is a National Statistics publication. It estimates the contribution of revenue raised in Scotland toward the goods and services provided for the benefit of Scotland. The estimates in this publication are consistent with the UK Public Sector Finance Statistics for April 2011.
  • Three estimates of Scotland's public sector accounts are presented in GERS, (i) excluding North Sea revenue, (ii) including a per capita share of North Sea revenue and (iii) including an illustrative geographical share of North Sea revenue.

Public Sector Expenditure for Scotland

Table E.1: Public Sector Total Managed Expenditure: Scotland 2005-06 to 2009-10

2005-06

2006-07

2007-08

2008-09

2009-10

Public Sector Expenditure for Scotland (£ millions)

49,962

52,692

55,803

58,913

62,086

Public Sector Expenditure for Scotland (% of UK Total)

9.5%

9.6%

9.6%

9.4%

9.3%

  • In 2009-10, total public sector expenditure for the benefit of Scotland, plus a per capita share of debt interest payments, was £62.1 billion. This is equivalent to 9.3% of total UK public sector expenditure.

Scottish Public Sector Revenue

Table E.2: Total Current Revenue: Scotland 2005-06 to 2009-10

(£ million)

2005-06

2006-07

2007-08

2008-09

2009-10

Excluding North Sea revenue

39,839

42,272

45,031

43,131

42,201

Including North Sea revenue (per capita share)

40,632

43,026

45,661

44,219

42,747

Including North Sea revenue (geographical share)

47,856

49,775

52,147

54,871

48,132

(% of Total UK Revenue)

Excluding North Sea revenue

8.3%

8.3%

8.3%

8.3%

8.3%

Including North Sea revenue (per capita share)

8.4%

8.3%

8.3%

8.3%

8.3%

Including North Sea revenue (geographical share)

9.8%

9.6%

9.5%

10.3%

9.4%

  • In 2009-10, total Scottish non-North Sea public sector revenue was estimated at £42.2 billion, (8.3 per cent of total UK non-North Sea revenue). Including a per capita share of North Sea revenue, total Scottish public sector revenue was estimated at £42.7 billion (8.3 per cent of UK total public sector revenue). When an illustrative geographical share of North Sea revenue is included, total Scottish public sector revenue was estimated at £48.1 billion (9.4 per cent of UK total public sector revenue).

Scotland's Overall Fiscal Position

  • GERS provides two measures of Scotland's fiscal position, the current budget balance and the net fiscal balance. The current balance shows the difference between current revenue and current expenditure. It measures the degree to which current taxpayers meet the cost of paying for the public services they use and a contribution to debt interest payments
  • The net fiscal balance measures the difference between total public sector expenditure (including capital expenditure) and public sector revenue. It therefore includes investments in public sector infrastructure - roads, hospitals, and schools which bring benefits to the Scottish economy in the future.

Current Budget Balance

Table E.3: Current Budget Balance: Scotland 2005-06 to 2009-10

(£ million)

2005-06

2006-07

2007-08

2008-09

2009-10

Excluding North Sea revenue

-7,277

-6,799

-7,112

-10,952

-14,897

Including North Sea revenue (per capita share)

-6,484

-6,045

-6,483

-9,864

-14,352

Including North Sea revenue (geographical share)

740

704

3

787

-8,966

(% of GDP)

Excluding North Sea revenue

-7.3%

-6.4%

-6.2%

-9.5%

-13.4%

Including North Sea revenue (per capita share)

-6.3%

-5.5%

-5.6%

-8.4%

-12.6%

Including North Sea revenue (geographical share)

0.6%

0.6%

0.0%

0.6%

-6.8%

  • In 2009-10, the estimated current budget balance for the public sector in Scotland was a deficit of £14.9 billion (13.4 per cent of GDP) excluding North Sea revenue, a deficit of £14.4 billion (12.6 per cent of GDP) including a per capita share of North Sea revenue or a deficit of £9.0 billion (6.8 per cent of GDP) including an illustrative geographical share of North Sea revenue.
  • In 2009-10, the UK as a whole ran a current budget deficit, including 100 per cent of North Sea revenue, of £107.3 billion (7.6% of GDP).

Net Fiscal Balance

Table E.4: Net Fiscal Balance: Scotland 2005-06 to 2009-10

(£ million)

2005-06

2006-07

2007-08

2008-09

2009-10

Excluding North Sea revenue

-10,123

-10,420

-10,771

-15,782

-19,885

Including North Sea revenue (per capita share)

-9,330

-9,666

-10,142

-14,694

-19,339

Including North Sea revenue (geographical share)

-2,106

-2,916

-3,656

-4,043

-13,954

(% of GDP)

Excluding North Sea revenue

-10.1%

-9.8%

-9.4%

-13.7%

-17.8%

Including North Sea revenue (per capita share)

-9.1%

-8.9%

-8.7%

-12.5%

-17.0%

Including North Sea revenue (geographical share)

-1.7%

-2.3%

-2.6%

-2.9%

-10.6%

  • In 2009-10, Scotland's estimated net fiscal balance was a deficit of £19.9 billion (17.8 per cent of GDP) when excluding North Sea revenue, a deficit of £19.3 billion (17.0 per cent of GDP) when including a per capita share of North Sea revenue or a deficit of £14.0 billion (10.6 per cent of GDP) when an illustrative geographical share of North Sea revenue is included.
  • In 2009-10, the equivalent UK position including 100 per cent of North Sea revenue, referred to in the UK Public Sector Accounts as 'net borrowing', was a deficit of £156.5 billion (or 11.1 per cent of GDP).