In a report published today, the committee says it is not currently possible to determine whether the government’s tax and spending plans are affordable and sustainable – which was the purpose of the committee’s latest inquiry.
The committee also warns the Scottish Budget faces substantial risks if the government does not implement its Fiscal Sustainability Delivery Plan.
Finance and Public Administration Committee convener Clare Haughey said:
“Our committee recognises the scale of the pressure on the Scottish Budget, particularly in 2027-28. However, we have insufficient evidence to determine whether the Scottish Government’s tax and spending plans are affordable and sustainable.
“We are also concerned that the Scottish Budget faces substantial risks if the three pillars of its ‘Fiscal Sustainability Delivery Plan’ (FSDP) - including ambitious public service reform targets - are not delivered in full and on time.
“We therefore call on the Scottish Government to provide much greater transparency on progress in closing the fiscal gap and meeting reform targets.”
Setting out the committee’s recommendations, Ms Haughey said:
“As a first step, the Scottish Government should publish an updated FSDP alongside the Scottish Budget 2027-28 on 3 December 2026.
“From 2027, we expect the government to resume annual publication of its Medium-Term Financial Strategy and commit to regular spending reviews given the greater predictability of the UK review cycle.
“We also urge the government to update its public sector pay policy and tax strategy at the earliest opportunity.”
Ms Haughey concluded:
"We heard from witnesses that the Scottish Government needs greater fiscal flexibilities and will undertake further work on this issue in the coming weeks to inform the upcoming fiscal framework review. "Collectively, the recommendations in our report aim to strengthen fiscal sustainability and support the effective management of Scotland’s public finances.”
Read the Finance and Public Administration Committee's report