SCOTTISH Government revenue is growing faster than spending, new GERS figures show.
Revenues raised in Scotland totalled £98.3 billion in 2025-26, up 7% on last year while spending grew at a slower pace.
Outgoings were £123.6bn in total, an increase of 4.8% over the year, according to the Government Expenditure and Revenue Scotland (GERS) annual statistics from the Scottish Government.
This means that Scotland's net fiscal balance, its "notional" deficit, was £25.3bn. This was -10.9% of gross domestic product (GDP), which is a measure of the size of the economy.
This is an improvement of 0.6 percentage points, compared with a one percentage point improvement for the UK as a whole, the Scottish Government said.
The Scottish Government said the figures showed "we are delivering sustainable finances" and stressed that the deficit showed Scotland's position within the Union and not "what an independent Scotland’s position will be".
Per head, spending is higher in Scotland than in the rest of the UK at £22,281, compared with £19,561 per capita in the rest of Britain, and the largest increases in spending were in social security and health care.
Policies from Westminster and Holyrood boosted tax receipts in Scotland, with the increase in employers' National Insurance contributions adding £2.4bn to the Scottish Government's coffers, while the SNP's decision to freeze the higher, additional, and top rates of Scottish Income Tax added £1.5bn.
But income from North Sea tax receipts is down by £0.4bn, which the Scottish Government attributed to "falling oil and gas prices during the year".
Revenue per person in Scotland, including the £3.2bn collected from the North Sea, was roughly on a par with the UK average at £17,718 compared to £17,720.
Revenues were up overall by 7.6%, totalling £95.1bn, which is 7.7% of all UK non-North Sea revenue raised.
Finance Secretary Jenny Gilruth said: "The latest GERS stats show that total and devolved revenues grew faster than spending – showing in particular that in the areas where our Government has control, we are delivering sustainable finances.
“The significant increase in income tax revenues shows that the decisions which this Government has taken are helping to deliver additional funding for measures to ease the cost of living like the Scottish Child payment, free prescriptions, bus travel for under-22s and free university education.
“GERS provides notional estimates for Scotland’s deficit as part of the UK – it simply does not show what an independent Scotland’s position will be.
“With the powers of independence we would be able to chart a different path, ensuring we grow the economy to allow Scotland to reach her full potential.”
The publication of GERS figures is dogged with controversy, as Unionists claim that the numbers show Scotland is better off within the UK while those on the pro-independence side argue that the estimates do not show what the country's position would be if the country became independent.
In a warning on the eve of publication, one of Scotland's top economic think tanks warned that using the GERS report to attack the idea of independence "is to misuse it".
The Fraser of Allander Institute, based at Strathclyde University, said on Tuesday that the statistics could not be used to say "anything about an independent Scotland".
The non-partisan institute also said the numbers did not show "how healthy the Scottish economy is", adding: "The headline net fiscal balance will inevitably dominate the discussion, but it is only part of the story. Understanding why it has changed is just as important as the figure itself.”
