The Scottish Government has access to resource and capital borrowing powers.

It can use capital borrowing to fund capital investment. In 2023-24 it is limited to £450 million a year and to a total capital debt stock of £3,000 million.

Resource borrowing can only be unlocked when negative tax and social security forecast errors have occurred. It is limited to £600 million of yearly borrowing and capped to £1,750 million of overall resource debt stock.

Following the fiscal framework review in August 2023, borrowing limits increase by inflation from 2024-25 onwards.

The Commission is required to assess the reasonableness of the Scottish Government’s borrowing plans. To make our assessment we consider the wider funding position, such as: changes to the Block Grant, reconciliations, tax net positions, Scottish Government assumptions on other funding and the limits of the fiscal framework.