Budget rules beefed up
SUBSTANTIAL changes must be made to Scotland’s budget process to allow greater scrutiny, an expert group has warned.
A budget process review group set up following the further devolution of fiscal powers recommends a ‘cultural change’ to the system.
Members say the budget will become ‘increasingly complex’ and ‘subject to greater uncertainty and volatility’ as a result of the Scotland Act 2016.
Scotland will oversee income tax and get more welfare powers, but the group identified ‘weaknesses’ in the present system, including limited parliamentary influence and a failure to take sufficient account of the UK budget timetable.
Group member Caroline Gardner, Auditor General for Scotland, said: ‘Parliament’s extensive new financial powers reinforce the pressing need for scrutiny to become more focused on outputs and outcomes, with an emphasis on what budgets have achieved or aim to achieve.
‘Increased complexity of the Scottish budget strengthens the need to improve accessibility and transparency of budget information… to enhance public understanding of the budget.’
Finance Secretary Derek Mackay said: ‘This report proposes a new approach to our budget process that suits the wider powers and responsibilities that Scottish parliament now has.’