Scotland’s budget deficit shrinks

Bloomberg

Scotland’s public spending deficit shrank after revenue from the North Sea oil industry jumped to the highest in eight years and helped offset the
fallout from the pandemic.
The shortfall dropped to 23.7 billion pounds ($28 billion), or 12.3% of gross domestic product, in the 2021-22 financial year, according to the Government Expenditure and Revenue Scotland report. That compares with 6.1% for the UK as a whole and 22.7% for Scotland in the previous fiscal year.
The GERS report estimates the difference between what Scotland raises in tax and what is spent on public services. It shows figures including and excluding a geographical share of revenue from the North Sea. The findings provide the basis for Scotland’s fiscal position
as the political debate over
independence rumbles on.
First Minister Nicola Sturgeon is pushing for another vote on breaking away from the rest of the UK.
The British government has refused to grant the permission to hold one, and Sturgeon has turned to the courts to test the legality of the Scottish government’s draft referendum legislation.
Deputy First Minister John Swinney said the GERS figures will improve again in current financial year because of a predicted 13 billion pounds of oil money. Even without the North Sea, Scotland had enough revenue to cover day-to-day spending on areas the Scottish government is responsible for, as well as social security, he said.