Government Expenditure & Revenue Scotland 2012-13

EXECUTIVE SUMMARY

• Government Expenditure and Revenue Scotland (GERS) is a National Statistics publication. It estimates the contribution of revenue raised in Scotland towards the goods and services provided for the benefit of Scotland under the current constitutional arrangements. The estimates in this publication are consistent with the UK Public Sector Finances published in February 2014.
• Three estimates of Scotland's public sector accounts are presented in GERS, (i) excluding North Sea revenue, (ii) including a per capita share of North Sea revenue and (iii) including an illustrative geographical share of North Sea revenue.

Scottish Public Sector Revenue

Table E.1: Total Current Revenue: Scotland 2008-09 to 2012-13

• In 2012-13, total Scottish non-North Sea public sector revenue was estimated at £47.6 billion, (8.2% of total UK non-North Sea revenue). Including a per capita share of North Sea revenue, total Scottish public sector revenue was estimated at £48.1 billion (8.2% of UK total public sector revenue). When an illustrative geographical share of North Sea revenue is included, total Scottish public sector revenue was estimated at £53.1 billion (9.1% of UK total public sector revenue).

Public Sector Expenditure for Scotland

Table E.2: Public Sector Total Managed Expenditure: Scotland 2008-09 to 2012-13

• In 2012-13, total public sector expenditure for Scotland, including a per capita share of UK debt interest payments, was £65.2 billion, 9.3% of UK public sector expenditure.

Scotland's Overall Fiscal Position

• GERS provides two measures of Scotland's fiscal position, the current budget balance and the net fiscal balance. The current budget balance shows the difference between current revenue and current expenditure. It measures the degree to which taxpayers meet the cost of paying for public services excluding capital investment.
• The net fiscal balance measures the difference between total public sector expenditure (including capital expenditure) and public sector revenue. It therefore includes public sector capital investment, such as the construction of roads, hospitals, and schools, which yields benefits not just to current taxpayers but also to future taxpayers.

Current Budget Balance

Table E.3: Current Budget Balance: Scotland and UK 2008-09 to 2012-13

• In 2012-13, the estimated current budget balance for the public sector in Scotland was a deficit of £14.2 billion (11.2% of GDP) excluding North Sea revenue, a deficit of £13.6 billion (10.6% of GDP) including a per capita share of North Sea revenue, or a deficit of £8.6 billion (5.9% of GDP) including an illustrative geographical share of North Sea revenue.
• In 2012-13, the UK as a whole ran a current budget deficit, including 100% of North Sea revenue, of £91.9 billion (5.8% of GDP).

Net Fiscal Balance

Table E.4: Net Fiscal Balance: Scotland and UK 2008-09 to 2012-13

• In 2012-13, Scotland's estimated net fiscal balance was a deficit of £17.6 billion (14.0% of GDP) when excluding North Sea revenue, a deficit of £17.1 billion (13.3% of GDP) when including a per capita share of North Sea revenue, or a deficit of £12.1 billion (8.3% of GDP) when an illustrative geographical share of North Sea revenue is included.
• In 2012-13, the equivalent UK position including 100% of North Sea revenue, referred to in the UK Public Sector Accounts as net borrowing, was a deficit of £114.8 billion (or 7.3% of GDP).