Published 10 days ago • loading... • Updated 8 days ago
Spending Outstrips Revenue Raising in Scotland but Gap Narrows as Taxes Rise
The institute said the annual fiscal report is useful for debate, but its estimates cannot show how an independent Scotland would perform.
On Wednesday, August 12, the Scottish Government published the annual Government Expenditure and Revenue Scotland report, detailing the fiscal balance between taxes raised and public spending for the 2025-26 financial year.
The Fraser of Allander Institute warned on Tuesday that GERS figures cannot be used to say "anything about an independent Scotland," noting the report measures Scotland's current position within the United Kingdom.
Total revenues reached £98.3 billion while public spending totaled £123.6 billion in 2025-26, resulting in a net fiscal deficit of £25.3 billion, equivalent to 10.9 per cent of Scotland's GDP.
Scottish Secretary Douglas Alexander said the statistics "clearly demonstrate the value to people in Scotland," while Finance Secretary Jenny Gilruth stressed that devolved revenues grew faster than spending.
Conservative MSP Craig Hoy claimed Scots receive a "record union dividend" of over £2,700 per person compared to the UK average, while the Scottish Government insists GERS estimates do not reflect an independent Scotland's position.