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The Scottish Government Consolidated Accounts for the year ended 31 March 2017

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Rural Economy and Connectivity

Restated
2015-16
Outturn
£m
Programme Variance
Note
Gross
Expenditure
£m
Income
Applied
£m
Outturn
£m
Budget
£m
Variance
£m
Departmental Expenditure Limit (DEL)
136 EU Support and Related Services 1 693 533 160 163 (3)
3 Fisheries 10 6 4 5 (1)
40 Rural Services 2 32 - 32 39 (7)
65 Highlands and Islands Enterprise 62 - 62 64 (2)
749 Rail Services 738 - 738 740 (2)
252 Concessionary Fares and Bus Services 3 250 - 250 261 (11)
78 Other Transport Policy, Projects and Agency Administration 4 105 - 105 110 (5)
265 Motorways and Trunk Roads 5 285 1 284 289 (5)
164 Ferry Services 6 189 4 185 167 18
48 Air Services 7 39 1 38 42 (4)
76 Digital Strategy 8 87 5 82 86 (4)
30 Central Government Grants to Local Authorities 22 - 22 22 -
1,906 Total DEL 2,512 550 1,962 1,988 (26)
Annually Managed Expenditure (AME)
(2) EU Support and Related Services 9 6 - 6 - 6
(1) Provision for Road Improvement - - - 2 (2)
(3) Total AME 6 - 6 2 4
Other Expenditure
- Animal License Fees - - - - -
80 Motorways and Trunk Roads PPP/PFI 10 73 - 73 87 (14)
80 Total Other Expenditure 73 - 73 87 (14)
1,983 Total Resources 2,591 550 2,041 2,077 (36)
596 Capital DEL - Additions 11 880 - 880 610 270
(6) Capital DEL - Disposals/Repayments 11 (245) - (245) (5) (240)
(2) Capital AME - Additions 2 - 2 - 2
99 Capital ODEL - Additions 157 - 157 157 -
687 Total Capital 794 - 794 762 32
2,670 Total Outturn 3,385 550 2,835 2,839 (4)

In addition to direct expenditure, the share of administration costs allocated to the Rural Economy and Connectivity Portfolio is £18m. This gives a total net expenditure of £2,853m.

Explanation of Major Variances greater than £3m:

Note 1 £3m as a result of lower than anticipated uptake on demand-led services.
Note 2 £2m in exchange rate gain in respect of EU CAP payments loan scheme. Further £2m in respect of additional EU support for floodbank restoration with additional £3m in other minor variances.
Note 3 £13m of lower than anticipated expenditure partially offset by £4m of additional expenditure on demand-led bus service operator grants due to increased distance travelled and increased number of low carbon buses qualifying for higher rate. Further variance of £2m following the reprofiling of Integrated Travel In Scotland set up expenditure and the reduction in Electronic Ticket Machine upgrade costs.
Note 4 Variance reflects the final level of allocation to support the Green Bus Fund and emerging savings on a number of projects including research and procurement.
Note 5 Variance is due to the reclassification of Network Strengthening expenditure.
Note 6 The variance reflects in-year additional expenditure of £4m in Pension Fund contributions in line with the recovery plan to address the deficit on the Calmac Pension Fund, £9m in contractual variations reflecting timetable and demand-led changes, Clyde and Hebrides Ferry Service contract variations and £2m due to fuel price increases. Further additional expenditure of £1m on Colintraive/Rhubodach project brought forward to commence in 2016-17, £1m on additional support to Caledonian Maritime Assets Ltd in respect of the Brodick Harbour project and £1m on other minor projects.
Note 7 A one-off receipt of £6m for a legal settlement at Highlands and Islands Airports Limited (HIAL), partially off-set by £2m of additional expenditure on Lifeline Air Services arising from Public Service Obligation contracts.
Note 8 £2m savings in Connectivity Resource expenditure with additional £2m in other minor variances.
Note 9 Higher than anticipated Agriculture and Rural Economy provisions and asset impairments.
Note 10 £6m reduction in M8 Unitary charges and £8m reduction in M6 (M74) Unitary charges due to traffic and work plan.
Note 11 "Net variance of £30m, comprising:
£77m of increased funding support for CAP farmers' loans due to be repaid in 2017-18, partially offset by £3m underspend as a result of programme reprofiling for CAP Futures.
£44m variance in Transport Scotland made up of £42m of savings on the Forth Replacement Crossing (£8 million of savings will flow to 2017-18, reflecting a change in the timing of the drawdown of the remaining risk provision rather than any movement in the physical works), £6m saving due to in-year change in the loan payment profile for two 100m ferries and £16m transferred to another budget category partially offset by additional contractual payments for M8/73/74 project (£11m) and changes to the accounting treatment for contractual payments (£13m) and further variances in other areas of £7m including £3m on A9 Kincraig to Dalraddy, £2m on A82 Pulpit Rock and £1m on Aberdeen Western Peripheral Route."

Remaining £5m consists of other minor variances across a number of programmes within the portfolio.