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EXPENDITURE REPORT SHOULD BE STUDIED CLOSELY, SAYS FORSYTH

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Commenting on the Government Expenditure and Revenue in Scotland, 1994-95 report, published today by The Scottish O...
Commenting on the Government Expenditure and Revenue in Scotland, 1994-95 report, published today by The Scottish Office, Scottish secretary Michael Forsyth said:

'I welcome and commend this detailed analysis of the government's spending and revenue flows in Scotland. The findings, which are based on a sound methodological framework, should be studied closely by everyone with an interest in the vital issue of Scotland's constitutional future.

'The figures speak for themselves. In 1994-95, the Government spent over £30bn in Scotland, the equivalent of £5,900 for every man woman and child in the country; the estimated revenues to government from Scottish households and companies were £22bn. The resultant fiscal deficit was 14% of Scottish GDP.

'Aggregate spending per head is no less than 17% above the United Kingdom average. This means that the level of Government expenditure in Scotland is over £4bn higher than if it were based solely on Scotland's share of the UK population.

'The financial flows identified in this report are the outcome of a budgetary framework which applies consistently across the United Kingdom as a whole. They demonstrate the economic benefits Scotland obtains from these arrangements, not the least of which is Scotland's ability to determine its own spending priorities from within the overall Scottish Office budget'.
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