The Scottish government has defended its plan to use its resource borrowing powers for the first time in order to manage volatility caused by a forecast error in this year’s budget.
Earnings have grown faster in Scotland than in the rest of the UK over the past year, raising hopes that the Scottish economy could be boosted by higher than anticipated income tax revenues.
Scotland’s net fiscal balance has improved slightly on last year, with an increase in revenues outstripping a rise in public sector expenditure, according to the latest figures.
The debate over Scotland’s economic future has become increasingly febrile in the wake of the blueprint for independence published by the SNP’s Sustainable Growth Commission.
