A huge drop in oil revenues means Scotland’s public spending deficit now sits at more than £12 billion, according to the Government Expenditure and Revenue Scotland (GERS) data. Last year, oil revenues accounted for £5.58 billion, a figure that had almost halved from the previous year’s £10 billion.
The report also stated that, in 2012/13, Scotland produced 9.1 per cent of the UK’s overall tax revenue, and received 9.3 per cent of the public spending. It raises huge questions as to how well equipped an independent Scotland would be to cope with volatile and decreasing levels of oil tax receipts, something on which many on the Yes side believe the economy would be based.
In
previous Scottish Government estimations, even the most pessimistic projection
for oil revenues in an independent Scotland was considerably higher than the
reality set out today. And as the UK Treasury points out, the outlook for
2013/14 looks set to be even more bleak, with revenues projected to be a
further 20 per cent lower.
Scottish Conservative finance spokesman Gavin
Brown MSP said: “This is a staggering drop in oil revenues by almost 50 per
cent in a single year. That shows just how volatile this resource can be, and
it appears that the figures for next year may be even lower. Given the Scottish
Government’s White Paper relies heavily on last year’s figures – which was a
strong year for oil – it’s important that it now reworks its calculations,
update the figures and make sure future projections are based on the most
reliable data. This has to be done as a matter of urgency.”
Scottish
Conservative constitution spokeswoman Annabel Goldie MSP said: “Today’s figures
from GERS show the yawning gap between the Yes campaign dream and the stark
financial reality. The much vaunted SNP White Paper underestimated expenditure
and ambitiously overestimated oil receipts. Even with that cosmetic touch there
was still a substantial budget deficit and the dramatic tumble in oil receipts
laid bare today shows how flawed the SNP White Paper is.
