Scottish Budget - provisional outturn 2025-2026: briefing note - 18 June 2026
The overall provisional fiscal outturn for 2025-26 is £55.9 billion against a total fiscal budget of £56.3 billion. The Scottish Government (SG) is not permitted by Treasury to overspend its budget. The remaining underspend of £358 million, carried forward in full in the Scotland Reserve.
Scotland Reserve
21. The Scotland Reserve provides the Scottish Government with a limited facility to manage the smoothing of all types of spending, assist the management of tax volatility and determine the timing of expenditure.
22. The Reserve is split between Fiscal Resource and Fiscal Capital. In 2025-26 the Scotland Reserve is capped at £734 million. This equates to just over 1% of our total discretionary budget.
23. From 2023-24, annual drawdowns from the Reserve are unlimited. There are also no annual limits for payments into the Scotland Reserve provided the overall cap is not breached.
24. As set out above, the Scotland Reserve balance of £358 million is being utilised to fund the £150 million carry forward assumption set out in 2026-27 Budget as well as providing the year-end and annual audit contingency.
| Year | Resource £million | Capital £million | FT £million | Fiscal £million |
|---|---|---|---|---|
| 2021-22 Opening balance | (405) | (7) | (197) | (608) |
| 2021-22 Drawdowns | 405 | 7 | 197 | 608 |
| 2021-22 Additions | (604) | (81) | (14) | (699) |
| 2021-22 Closing balance | (604) | (81) | (14) | (699) |
| 2022-23 Opening balance | (604) | (81) | (14) | (699) |
| 2022-23 Drawdowns | 604 | 81 | 14 | 699 |
| 2022-23 Additions | (250) | (32) | (44) | (326) |
| 2022-23 Closing balance | (250) | (32) | (44) | (326) |
| 2023-24 Opening balance | (250) | (32) | (44) | (326) |
| 2023-24 Drawdowns | 250 | 32 | 44 | 326 |
| 2023-24 Closing Balance | (265) | (143) | (4) | (411) |
| 2024-25 Opening balance | (265) | (143) | (4) | (411) |
| 2024-25 Drawdowns | 265 | 143 | 4 | 411 |
| 2024-25 Additions | (550) | (22) | (24) | (596) |
| 2024-25 Closing Balance | (550) | (22) | (24) | (596) |
| 2025-26 Opening balance | (550) | (22) | (24) | (596) |
| 2025-26 Drawdowns | 550 | 22 | 24 | 596 |
| 2025-26 Additions | (312) | (42) | (4) | (358) |
| 2025-26 Closing Balance | (312) | (42) | (4) | (358) |
Contact
Email: Corporate.reporting@gov.scot