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The latest Government Expenditure and Revenue Scotland (GERS) report is 'further evidence of the clear benefits of full fiscal autonomy' - according to Finance Secretary John Swinney.

Including a geographical share of North Sea revenues, the GERS figures show Scotland with a current budget surplus in each of the last three years from 2005-06.

In 2007-08, Scotland's current budget surplus was an estimated £219 million, or 0.2 per cent of GDP. This compares with a UK deficit of £5.3 billion, or 0.4 per cent of GDP.

GERS also estimates Scotland's net fiscal balance - which factors in capital and infrastructure investment for the nation's long term benefit. The Scottish figure of a deficit of 2.7 per cent of GDP reflects a relatively high level of net capital investment in Scotland in 2007-08.

Mr Swinney said:

"The GERS figures show Scotland in current budget surplus at a time when the UK current budget was in deficit. To illustrate, in family budget terms, Scotland's current account is in surplus, while the UK is in overdraft. This represents the reality of Scotland's budget position, based on the official figures.

"Scotland has been in current budget surplus now for three years, to the tune of almost £2.3 billion. The GERS figures confirm that Scotland stands on a firm financial footing - firmer than the UK as a whole - and that full fiscal autonomy and independence hold out the prospect of a flourishing and economically successful Scotland.

"The figures also show that net capital investment has almost doubled between 2003-04 and 2007-08, with increased capital spending in the first year of this administration. This demonstrates the significant steps being taken to reverse decades of under-investment in Scotland's infrastructure.

"Today's figures show over seven billion pounds of North Sea revenue from Scottish waters flowing into the UK Treasury in 2007-08. That figure is likely to be some £12 billion in 2008-09, emphasising the strength of Scotland's fiscal position.

"However, GERS can only ever be a snapshot of Scotland's finances within the Union. Through full fiscal autonomy and independence, we can take the right decisions for Scotland, both to help us through the current recession and put this country on the path to long term success."

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