Accounts given clean audit for eleventh year running.

The Scottish Government continues to manage its budget resources effectively, Consolidated Accounts published today show.

Welcoming the accounts, which are the primary means of accountability and reporting in relation to the Scottish public financial resources, Finance Secretary Derek Mackay said:

“Under the current devolution settlement, the Scottish Government is not permitted to overspend its budget. As a consequence, we have consistently adopted a position of controlling public expenditure to ensure we live within the budget caps that apply, but remain able to carry forward some spending power resources for a future year. This is a common and prudent strategy that has proved to be the right one over a number of years.

“This is the eleventh consecutive year Audit Scotland has given the Consolidated Accounts a clean, unqualified audit and once again demonstrates our firm grip on Scotland’s public finances. The provisional cash underspend has not changed since my statement to parliament in June, remaining at £155 million for 2015-16 and representing only 0.5% of the overall budget. Not a penny of this underspend is lost to Scotland, as we will be carrying this forward into 2016-17 to support the £100 million capital stimulus and other initiatives, which were recently announced within our Programme for Government.

“This is also the first year in which devolved taxes in respect of the Land and Building Transactions and Landfill Taxes have been managed in Scotland and the accounts indicate these taxes delivered £74 million more that initial estimates.

“We recognise that Scotland’s budget process needs to evolve to take account of the complexities and opportunities associated with the new powers, notably those relating to fiscal policy. That is why I have agreed a fundamental review of the budgetary process to ensure we develop a process that balances the time required for proportionate and effective Parliamentary scrutiny with the need to ensure the information is based on the most up-to-date forecasts.

“Our continuing competence in the management of the public finances has once again been demonstrated at a time of considerable economic turbulence and on-going pressures on our finances, notably through the UK Government’s continued adherence to austerity.”

ARTICLE SOURCE: http://news.scotland.gov.uk/News/Scottish-Government-accounts-2015-16-2c18.aspx