Balancing Scotland’s Budget

A balanced budget for Scotland has been delivered for 2025-26.

The Scottish Government’s provisional outturn for the financial year is £55.9 billion against a total fiscal budget of £56.3 billion.

The underspend of £358 million, presented to Parliament this afternoon, represents 0.6% of the Scottish Government’s total budget. This will be carried forward through the Scotland Reserve into future financial years and there is no loss of spending power to the Scottish Government.

Public Finance Minister Hannah Mary Goodlad said:

“The Scottish Government's budget must balance each and every financial year. The majority of our funding continues to be tied to the decisions of the UK Government and as such is subject to high levels of uncertainty until very late in the financial year.

“Despite these challenges, we have continued to deliver effectively for Scotland, focusing on key priorities of the growing the economy, tackling child poverty, the cost of living, improving the NHS and public services, and tackling climate change.

“We will continue to take a responsible approach to managing the public finances, delivering public services which are good quality, efficient, effective, and sustainable.”

Background

The underspend incorporates £312 million of resource, £42 million of capital and £4 million of financial transactions.

In addition, the provisional non-cash position is an underspend of £249 million against a £4 billion budget. This non cash budget is ring-fenced, cannot be used for day to day spending and is used for accounting adjustments, predominantly depreciation.

Finalised figures will be reported in a Statement of Final Outturn once all bodies have completed and published their annual report and accounts.