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Scottish public spending deficit rises, say latest Gers figures Scottish public spending deficit rises, say latest Gers figures
(35 minutes later)
The size of Scotland's public spending deficit has risen, according to the latest Scottish government estimates.The size of Scotland's public spending deficit has risen, according to the latest Scottish government estimates.
In the last financial year the figure rose to more than £12bn, becoming larger than the deficit for the UK as a whole. In the last financial year the figure rose to more than £12bn, after spending of more than £65bn.
Scottish First Minister Alex Salmond said 2012-13 tax revenue was £800 higher per head in Scotland compared with the UK.Scottish First Minister Alex Salmond said 2012-13 tax revenue was £800 higher per head in Scotland compared with the UK.
He said the figures showed Scotland was one of the world's richest countries. Mr Salmond said the figures showed Scotland was one of the world's richest countries.
The £12bn figure, reported in the Government Expenditure and Revenue Scotland (Gers) data, included tax from oil and gas fields in Scottish waters and capital spending. The figures were reported in the Government Expenditure and Revenue Scotland (Gers) data, seen as a guide to the health of Scotland's public finances, which contain estimates of Scottish government spending, as well as the share of Whitehall budgets received by Scotland.
It represented a rise from 5% of national output the previous year, to 8.3% in the 2012-13 financial year, compared with a deficit of 7.3% for the UK as a whole that year. The £12bn figure, which included tax from oil and gas fields in Scottish waters and capital spending, represented a rise in the deficit from 5% of national output the previous year, to 8.3% in the 2012-13 financial year.
Gers, a guide to the health of Scotland's public finances, contain estimates of Scottish government spending, as well as the share of Whitehall budgets received by Scotland. This was compared with a deficit of 7.3% for the UK as a whole that year.
The figures are also a key pointer to the balance of taxation and spending if voters were to choose Scottish independence in the 18 September referendum. Mr Salmond said: "Today's Gers report confirms what independent commentators and analysts have been making clear - Scotland is one of the wealthiest countries in the world.
The statistics, covering 2012-13 said: "The figures show that tax revenues generated in 2012-13 were £800 higher per head in Scotland compared with the UK, meaning that now for every one of the last 33 years, tax receipts have been higher in Scotland than the UK.
"When looking at the difference between tax receipts and spending on everyday services for 2012-13, today's report shows Scotland and the UK were both in current budget deficit - by almost identical amounts as a percentage of GDP."
The first minister also said a 41.5% fall in North Sea oil revenue between 2011-12 and 2012-13 was partly down to "unplanned disruption" due to industry investment, which would reduce tax receipts in the short-term but maximise revenues in the future.
Ahead of the 18 September independence referendum, Chief Secretary to the Treasury Danny Alexander, said: "The Scottish government's argument for independence has been undermined by their own figures.
"It shows that in 2012-13, the Scottish deficit per person was almost £500 worse than that of the UK.
"By 2016-17 this gap is forecast to have widened to around £1,000 per person - whatever the Scottish government says now, the government of an independent Scotland would be forced to raise taxes and cut public services.
"We are better off together."
The Gers statistics, covering 2012-13, said:
Mr Salmond also said that additional Scottish government showed Scotland was in a stronger position than the UK over the five years to 2012-13 to the tune of £8.3bn - or £1,600 per person.