Scotland’s deficit has risen by more than £4.5 billion in the past year, as North Sea oil and gas revenues have halved, according to recent data.
The Government Expenditure and Revenue Scotland (GERS) report reveals a net fiscal deficit of £22.7 billion for 2023-24, up from just over £18 billion the previous year.
As a percentage of GDP, the deficit has increased from 8.4% to 10.4%, while the UK deficit decreased from 5% to 4.5% during the same period.
This increase comes as offshore oil and gas revenues from the North Sea dropped from £9.9 billion to £4.9 billion.
Although total revenue in Scotland rose from £86.9 billion to £88.5 billion, government expenditure per person is £2,417 higher than in the rest of the UK, with an average of £20,418 spent per person north of the border.
Scottish Finance Secretary Shona Robison stated that the deficit is “not a reflection on the finances or policies of the Scottish Government – it is a reflection of UK Government choices.” She added, “As an independent nation, we would have the power to make different choices.”
