Explainers

Fiscal Framework

The fiscal framework agreement was first published alongside the Scotland Act 2016 setting out the funding arrangements, and borrowing powers for the Scottish Government. It was updated in August 2023 and can be found on the Scottish Government’s website here.

• How funding for the Scottish Budget is adjusted to reflect the devolved tax and social security powers.
• Forecasting arrangements and responsibilities, including the role of the SFC.
• Arrangements for resource and capital borrowing.
• The Scotland Reserve, which can be used to transfer money between financial years.
  
  You can discover how the Fiscal Framework operates in our video here

More information on the fiscal framework can be found in our other explainers.