The Fiscal Framework Agreement between the Scottish and UK Governments was published in February 2016. The Fiscal Framework sets out the new fiscal arrangements required to go alongside the devolution of new tax and welfare powers.
Key elements of the fiscal Framework include -
- How the Scottish block grant will be adjusted to reflect the transfer of fiscal responsibilities;
- Forecasting arrangements and responsibilities;
- Arrangements for revenue borrowing and cash management to smooth revenue volatility and differences between revenue forecasts and out turn;
- Capital borrowing; and
- A range of other issues including administration costs,data sharing arrangements, dispute resolution, and implementation and review.
The Committee has agreed to closely monitor the implementation and operation of the framework throughout the current parliamentary session.