Revising Scotland’s fiscal framework Contents

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Contents

Terms of Reference

1 Introduction

What is a fiscal framework?

Why does Scotland’s fiscal framework need revising?

Accountability and powers

2 Fiscal institutions

3 Borrowing powers

Borrowing to support current expenditure

Balanced budget rule

Capital borrowing

Sources of Scottish Government borrowing

Limits to Scottish Government borrowing

Servicing the cost of borrowing

4 Adjusting the block grant

The initial adjustment

Indexing the adjustment

No detriment from devolution

Taxpayer fairness

Reserved spending

Compensatory transfers

5 Devolution of welfare powers

Indexation

Eligibility

Complexity

6 VAT

7 Conclusion

Appendix: Smith Agreement recommendations on an updated fiscal framework for Scotland

Conclusions and recommendations

Formal minutes

Witnesses

Published written evidence

List of Reports from the Committee during the current Parliament

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© Parliamentary copyright 2015

Prepared 9 February 2016