SCOTLAND'S deficit has more than doubled as a result of the coronavirus pandemic, new figures have shown.
The Government Expenditure and Revenue Scotland (GERS) released today shows the deficit is 22.4% of gross domestic product (GDP). The figure has increased by 13.6 percentage points in the last year from 8.8% in 2019-20, while the deficit in the rest of the UK rose by 11.6% to 14.2%.
When North Sea oil revenue is removed, Scotland’s deficit increases to 23.8%.
READ MORE: GERS Day: Independence 'essential’ as notional deficit expected to rise
Scotland’s Finance Secretary Kate Forbes said Covid-19 has “fundamentally shifted our fiscal landscape” after the new figures came out.
“These statistics clearly highlight the significant economic impact of the pandemic,” she said.
“Scotland’s economy contracted by about 10% last year, which is in line with the performance of the UK economy.
“The pandemic has not only changed people’s lives but it has fundamentally shifted our fiscal landscape, with countries and markets around the world reassessing what represents a viable deficit.
READ MORE: Open Minds on Independence #6: The truth about the annual GERS figures
“The Scottish Government has worked tirelessly to support businesses and households throughout the pandemic. While we face continued challenges, there are welcome signs that the Scottish economy is beginning to recover strongly.
“Business confidence is back above pre-pandemic levels, output is increasing and job vacancies are rising. As we rebuild, we are pushing forward with an ambitious 10 year agenda of economic transformation to help seize Scotland’s potential and deliver a more prosperous, fairer and greener economy.”
Forbes again called for the UK Government to engage with the Scottish Government on the devolution of more borrowing powers.
In a statement, the Finance Secretary said: “The GERS figures reflect Scotland’s position within the UK, under which 40% of spending and 70% of revenue income is reserved to the UK Government.
“The pandemic has clearly demonstrated the need for fiscal reform and that the Scottish Government’s financial powers are insufficient to deal with the new economic reality.
“We once again urge the UK Government to engage positively with us to devolve additional borrowing powers which would allow the Scottish Government to work with business and the public sector to build a recovery that works for Scotland.”
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