The fiscal framework agreement was published alongside the Scotland Act 2016 setting out the new funding arrangements, fiscal rules and borrowing powers for the Scottish Government. Important parts of the Fiscal Framework include:
- How the Barnett-determined Block Grant is adjusted to reflect the new tax and social security powers
- Forecasting arrangements and responsibilities, including the role of the SFC
- Arrangements for resource and capital borrowing
- Access to a Scotland Reserve which can be used to transfer money between financial years. This reserve is split into resource and capital components
More information on different parts of the Fiscal Framework can be found in our other explainers. The published fiscal framework agreement can be found on the Scottish Government’s website.