Scotland’s Public Deficit Soars as Oil and Gas Revenues Plummet – Scottish Business News

Scotland’s public spending deficit has significantly increased due to a sharp decline in oil and gas revenues from the North Sea.

The latest Government Expenditure and Revenue Scotland (GERS) report reveals that the country’s deficit has risen to £22.7 billion, which is a significant 10.4% of its GDP.

This marks an increase from the previous year’s deficit of 8.4% of GDP.

The revenue decline is mainly due to a halving of income from oil and gas, which fell from £9.9 billion to £4.9 billion.

This reduction has severely impacted Scotland’s fiscal position, as a significant portion of these revenues is generated from gas and oil production in Scottish waters.

The Scottish government has emphasised that the deficit figures reflect Scotland’s position within the UK, where the UK government largely controls fiscal decisions.

Finance Secretary Shona Robison noted that Scotland’s higher public spending is partly due to the funding model that supports devolved public services, which results in higher spending per capita compared to the rest of the UK.