Scotland’s deficit fell to £13.3 billion for 2016/17 amid an increase in oil and gas revenues, according to new figures.
The Government Expenditure and Revenue Scotland (GERS) statistics show a deficit of £13.3billion when a geographic share of North Sea revenues is allocated to Scotland.
That amounts to 8.3% of Scottish GDP, compared with the overall UK deficit of £46.2billion – 2.4% of UK GDP.
North Sea revenue rose from £56million in 2015/16 to £208million, reflecting an increase in total UK oil and gas revenues.
The figures also show Scotland’s onshore revenues increased by £3.3billion.
According to the latest report, Scotland’s deficit fell by £1.3billion from 2015/16, down from 9.3% of GDP to 8.3%.
First Minister Nicola Sturgeon said: “Scotland’s economy remains strong. In the last quarter, our economy grew nearly four times faster than the UK and the number of people in employment is at a record high.
“These figures reflect Scotland’s finances under current constitutional arrangements. However, they show that our investment in key industries, such as the life-science sector, is providing a real boost to our onshore economy. By continuing to invest in key sectors, we will ensure Scotland remains a productive and competitive country.
“The lower oil price had an impact on North Sea revenues and the wider economy last year. However, it is encouraging to see an improvement in the overall fiscal balance and that onshore revenues grew at their fastest rate in nearly twenty years.
“However, our long-term economic success is now threatened by Brexit, which risks reducing household incomes, employment and funding for public services. That is why we continue to press for the Scottish Government to have a direct role in Brexit negotiations.”
Scottish Liberal Democrats leader Willie Rennie called on the Scottish Government to explain why oil revenue estimates in its White Paper on independence were “so hopelessly wrong”.
He said: “Oil revenues have tanked since 2014. The SNP relied on the 2014 numbers for their independence campaign.
“People need to know why they got it so wrong to make sure the same mistakes can’t happen again.”
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