The UK’s public spending works fairly for Scotland and allows the whole country to pool and share its resources.
Tax revenue generated in Scotland amounts to £60 billion, including oil revenue, but benefits from £73 billion in public spending. That means we get out £13 billion more than we put in.
This system of sharing our resources means we are well-placed to tackle the problems of the future together, such as an ageing society, but gives the Scottish Parliament the freedom to make many financial decisions for itself.
Scotland has two governments that are both responsible for different things. For example, foreign policy and international relations are reserved to the UK Government, but health and social services are devolved to the Scottish Government.
When the UK Government increases funding for an area which is devolved, the Scottish Government receives extra funding too. For example, if the NHS in England gets a funding boost, the Scottish Government will also receive extra cash.
Since 2016, the UK has committed more than £4.8 billion of additional funding for Scotland.
The Scottish Parliament retains power over many financial decisions, including setting the rate of income tax, and how much is spent on important public services like health and education.
When the UK Government increases funding in a devolved area, the decision on how the additional funding is spent in Scotland is made by the Scottish Government.
The Scottish Parliament Information Centre contains more information about Scotland’s economy and finance.