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GOVERNMENT EXPENDITURE AND REVENUE IN SCOTLAND

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The Government Expenditure and Revenue in Scotland, 1994-95 report, published today by The Scottish Office, provide...
The Government Expenditure and Revenue in Scotland, 1994-95 report, published today by The Scottish Office, provides a factual contribution to public understanding of the budgetary issues in Scotland. The report - the third in the series, following previous editions in 1992 and 1995 - will be updated annually.

The format of the new report is very similar to the corresponding publication last year, the emphasis having been on providing fresh data. The report outlines the process by which government expenditure is planned, describes the allocation among those programmes that are the responsibility of the secretary of state for Scotland and estimates that proportion of expenditure incurred on behalf of the UK as a whole (such as defence) attributable to Scotland.

On the other side of the fiscal equation, the report provides estimates of the tax revenues paid by Scottish households and companies. This enables the 'fiscal deficit' - the General Government Borrowing Requirement attributable to Scotland - to be identified.

The figures provided are for 1994-95 - the latest year for which the required specific information on actual expenditure incurred and revenue received is available - and the publication includes a detailed description of the derivation of the various individual series.

The principal findings are:

-- Aggregate government spending in Scotland is £30.3bn. This is 10.2% of the UK total - ie over one percentage point higher than the Scottish share of the UK population (8.8%).

Government spending per head is £5,900 in Scotland, compared with £5,060 in the UK as a whole.

-- The total revenues of £22.1bn (excluding North Sea receipts) raised in Scotland are equivalent to 8.9% of total UK non-oil revenues. This is slightly above Scotland's share of the UK population and Scottish revenues per capita (at £4,310) are, therefore, marginally above the UK figure (£4,240).

-- The fiscal deficit - the extent to which total government expenditure in Scotland exceeds tax revenues raised in Scotland - is estimated to have been £8.2bn (excluding North Sea revenues and privatisation proceeds) in 1994-95. This is 14% of Scottish Gross Domestic Product (excluding oil); in the same year, the equivalent UK ratio was 7%.

-- The £8.2bn fiscal deficit in 1994-95 compares with a revised figure of £8.6bn in 1993-94. The latter was 15.75% of Scottish GDP (excluding oil). The revision (from £8.1bn) reflects more up-to- date data on government expenditure.

Government Expenditure and Revenue in Scotland, 1994-95 is available, free of charge, from the Economics Advice and Statistics Division, Scottish Office Education and Industry Department, Meridian Court, 5 Cadogan Street, Glasgow. Enquiries should be by post only and should enclose an A4-sized SAE.

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