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Parliamentary debates and questions

S5W-09114: Jamie Greene (West Scotland)

Scottish Conservative and Unionist Party

Date lodged: 2 May 2017

To ask the Scottish Government what long-term sustainable deficit it considers that Scotland can run.

Answered by: Derek Mackay 11 May 2017

The Fiscal Framework, agreed with the UK Government in February 2016, sets out the Scottish Government's statutory limits on borrowing as a maximum of £3 billion for capital expenditure and £1.75 billion for resource expenditure, the latter being subject to specific circumstances. The Fiscal Framework also specified annual caps of £450 million and £600 million respectively.

The Fiscal Framework does not give the Scottish Government the capability to plan for a revenue deficit. Borrowing on capital expenditure up to the cap can be planned for and is being fully deployed for 2017-18.

The Scottish Government has set out its commitment to ensure that revenue funded methods of investment will be used at a sustainable level, and do not overly constrain choices in future years. Accordingly, the Scottish Government will manage its future revenue commitments relating to investment spend to a maximum of 5% of its expected future annual total DEL budget.

Decisions on future borrowing levels will be taken as part of the 2018-19 and subsequent budget processes.