Scotland raised a record £98.3 billion in public sector revenue during 2025 to 26 as the country’s estimated fiscal deficit narrowed, according to the latest Government Expenditure and Revenue Scotland figures.

The annual GERS statistics show revenues increased by £6.3 billion, or 6.9 per cent, while public spending increased by £5.7 billion, or 4.8 per cent.

Scotland’s notional net fiscal balance, measuring the difference between revenue raised and public spending on behalf of people in Scotland, improved from a deficit equivalent to 11.5 per cent of GDP to 10.9 per cent.

In cash terms, the estimated deficit stood at £25.3 billion, an improvement of £600 million over the year.

The equivalent UK deficit was 4.2 per cent of GDP.

One of the most striking figures is the amount of revenue being generated per person, with Scotland raising £17,718 per head when North Sea revenues are included, almost identical to the UK average of £17,720.

Of the £98.3 billion raised in Scotland, £27.8 billion came from revenues which are devolved, representing around 28 per cent of the total.

Income tax receipts increased particularly strongly, rising by £1.5 billion during the year, with the Scottish Government attributing part of that growth to its taxation decisions.

The other side of the ledger remains substantial.

Public sector expenditure on behalf of people in Scotland reached £123.6 billion during 2025 to 26, with the largest increases coming from social protection and health.

Spending amounted to £22,281 per person in Scotland, compared with £19,561 across the UK, meaning expenditure per head was £2,720 higher in Scotland.

The figures cover spending undertaken for Scotland by both devolved and reserved governments and therefore include expenditure which is not controlled by the Scottish Government.

Deputy First Minister and Finance Secretary Jenny Gilruth said:

“The latest GERS stats show that total and devolved revenues grew faster than spending, showing in particular that in the areas where our Government has control, we are delivering sustainable finances.

“The significant increase in income tax revenues shows that the decisions which this Government has taken are helping to deliver additional funding for measures to ease the cost of living like the Scottish Child payment, free prescriptions, bus travel for under-22s and free university education.

“GERS provides notional estimates for Scotland’s deficit as part of the UK, it simply does not show what an independent Scotland’s position will be.

“With the powers of independence we would be able to chart a different path, ensuring we grow the economy to allow Scotland to reach her full potential.”

The figures leave plenty for Scotland’s political parties to argue over, particularly around the deficit and higher level of public spending, but the underlying numbers show revenues growing faster than expenditure during the year.

Scotland is raising almost exactly the same revenue per person as the UK average while receiving considerably higher public spending per head, with the estimated fiscal gap narrowing rather than widening in 2025 to 26.