SPLIT WOULD DEEPEN DEFICIT, SAY EXPERTS

A SEPARATE Scotland would have the second largest financial deficit in the Western world, according to a Treasury study.

Using data from the International Monetary Fund (IMF), Whitehall civil servants have calculated that the ‘black hole’ in the country’s finances would only be worse in percentage terms in the United States.

However, the US holds the globe’s reserve currency and so is able to sustain larger deficits than most countries.

In 2012-13, more than £65bil- lion was spent north of the Border by Westminster and Holyrood but only £53billion was raised through taxes.

Economists have calculated that Scotland’s deficit will be the equivalent of 5.5 per cent of gross domestic product (GDP) in 2016, compared to a figure for the rest of the UK of .5 per cent. The budget gap is expected to be £9.5billion, or £1,760 per head.

Danny Alexander, Chief Secretary to the Treasury, said: ‘The IMF’s data shows an independ- ent Scotland would have the second highest deficit of any advanced economy in the first year of independence.’ A Scottish Government spokesman said: ‘An independent Scotland would be the 1 th wealthiest country in the OECD – compared to the UK at 18th.

‘Scotland’s share of the UK debt is lower as a percentage of GDP than the UK’s.

‘Over the past five years, Scotland’s deficit has averaged 7.2 per cent of GDP while the UK has averaged 8. per cent.’