The Scottish Government has access to resource and capital borrowing powers.
Capital borrowing can be used to supplement capital spending, and borrowing can occur for any reason within the limits of the fiscal framework. These limits are £450 million per annum and £3,000 million in total.
Resource borrowing can be accessed within limits set out by the fiscal framework and when negative tax and social security forecast errors have occurred. The fiscal framework limits are £300 million per annum, rising to £600 million in the case of a Scotland-specific economic shock and a total limit of £1,750 million.
The Commission is required to assess the reasonableness of the Scottish Government’s projections of its borrowing. To make our assessment we consider a broad range of pressures the Scottish Government is facing, such as: changes to UK Government funding and spending plans, reconciliations, underspends and the limits of the fiscal framework.