Funding for the Scottish Budget

The Scottish Budget became more complex when tax and social security powers were devolved to the Scottish Parliament following the 2012 and 2016 Scotland Acts.

The Scottish Government receives funding from a range of sources. These include revenue from devolved Scottish taxes, funding from the UK Government and borrowing by the Scottish Government. Each type of funding has distinct arrangements which are set out in the UK Government’s Statement of Funding Policy and the fiscal framework agreed between the UK and Scottish Governments.

Our role includes presenting a picture of the overall Scottish Budget – how much funding comes from each source and whether the available funding has moved up or down between years. We use this to assess the reasonableness of the Scottish Government’s borrowing plans and assumptions.