The Smith Commission was convened in September 2014 and charged with reaching a cross-party agreement on the devolution of further powers to the Scottish Parliament. The Smith Commission published its report on 27 November 2014.
Paragraph 94 of the The Smith Commission report recommended that 'The devolution of further responsibility for taxation and public spending, including elements of the welfare system, should be accompanied by an updated fiscal framework for Scotland, consistent with the overall UK fiscal framework.'
Paragraph 95 set out that the fiscal framework should 'encompass a number of elements including the funding of the Scottish budget, planning, management and scrutiny of public revenues and spending, the manner in which the block grant is adjusted to accommodate further devolution, the operation of borrowing powers and cash reserve, fiscal rules, and independent fiscal institutions.'
Scottish and UK Government Ministers have met as the Joint Exchequer Committee (JEC) to negotiate the detail of the fiscal framework. JEC has met ten times from July 2015 to February 2016.