Deputy First Minister John Swinney has announced another £615m in “savings” to fill Scotland’s ballooning funding black hole.
Most of the cash will come from shifting money from within health and social care budgets.
He said: "There has never been a time of greater pressure on the public finances."
Record inflation and public sector pay deals are putting unprecedented pressure on the SNP /Green Government’s budget.
Swinney, who is acting Finance Secretary, had already announced in September £560 million in savings for the current financial year.
In an emergency budget statement to MSPs, he said the financial picture had worsened, adding that he was now announcing savings of nearly £1.2bn - a rise of £615m.
Swinney said: "Inflation is at a 40 year high and the pressure on the finances of households and businesses is acute. Public services are facing demands – entirely legitimate demands – to make significantly enhanced pay offers to their staff.
"As a Government we have a duty to respond. But our ability to respond is limited by the inactivity of the UK Government and the financial restrictions of devolution."
Of the £400m reprioritised within the health and social care budget, the funds include £116m relating to covid, £65m from primary care, £38m from mental health and £21m from Scottish Government staff reductions.
Other savings include £150m in "capital & financial transactions".
Swinney said: “The Scottish Government's budget today is worth £1.7 billion less than when it was published last December. At the same time, demand for government support and intervention is understandably increasing while we continue to try to fund increased public sector pay claims, particularly for those on lowest incomes.
“These savings are not ones we would wish to make, but in the absence of additional funding from the UK Government, we are left with no alternative.
“We must balance the books while prioritising funding to help families, back business, provide fair pay awards and to protect the delivery of public services. This Emergency Budget Review delivers on these objectives.”
Labour MSP Daniel Johnson said: “The public are paying the price for political failure in this budget.
“The Tories’ economic vandalism has pushed things to crisis point, but years of low growth and mismanagement from both our governments has laid the groundwork for this perfect storm.
“Nicola Sturgeon promised to open the books and take a team Scotland approach to tackling the cost of living crisis, but she hasn’t.
“Despite dragging their heels for months before delivering this update, the SNP are still just tinkering around the edges and making the same announcements on a loop.
“Scotland deserves better than these two failing governments and their disastrous economic illiteracy.”
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