Date lodged: 18 December 2017
To ask the Scottish Government what its response is to the assertion that, if it continues to borrow £450 million per annum, it will reach the £3 billion fiscal framework limit after four years and, in light of this, what plans it has to repay debt stock.
Answered by: Derek Mackay 11 January 2018
The decision was taken to maximise infrastructure investment in 2018-19, with the associated beneficial economic impact by borrowing up to the £450m limit. Decisions on future borrowing levels will be taken as part of the 2019-20 and subsequent budget processes.
The affordability and sustainability of all Scottish Government long term revenue commitments, including repayment of debt stock, are assessed through the budget process and are kept within a maximum of 5% of the total annual budget available. Decisions on the repayment of loan stock are taken on the basis of an assessment of value for money at the time of drawdown. The Scottish Fiscal Commission has assessed the reasonableness of the Scottish Government projections of borrowing in their economic forecasts.