Scotland's public finances would be showing a surplus for the third year in a row if it received its geographical share of North Sea oil revenues, according to a Scottish Government report.
Scotland's public finances would be showing a surplus for the third year in a row if it received its geographical share of North Sea oil revenues, according to a Scottish Government report.
It shows Scotland would be £219m in the black for 2007-8, figures that Finance Secretary John Swinney claimed were "further evidence of the benefits of full fiscal autonomy".
However, without this share of the oil money the deficit for the year is £7.1bn and with capital expenditure taken into account that rises to £11.1bn.
The figures, in the annual Government Expenditure and Revenues in Scotland (Gers) report, intensified a row between the SNP and Labour over how they should be interpreted.
Mr Swinney said: "Scotland has been in current budget surplus now for three years, to the tune of almost £2.3bn. 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.
"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.
"The figures show more than £7bn of North Sea revenue from Scottish waters flowing into the UK Treasury in the last financial year and that figure is likely to be some £12bn next year emphasising the strength of Scotland's fiscal position."
Labour spokesman Andy Kerr accused the SNP of "fantasy economics". He said Mr Swinney had "completely missed the point that Scotland is better placed to cope with the recession because Scotland is part of the UK.
"John Swinney appears not to have noticed that the Treasury spent £50bn saving our two biggest banks and safeguarding thousands of jobs.
"His obsession with a sterile debate about the economics of an independent Scotland completely misses the point that, in comparison to other small European countries like Ireland and Iceland, we have benefited from being part of the UK."
A Scotland Office spokesman also claimed the Scottish Government had been "disingenuous" in its interpretation of the figures.
The report also shows that around £45.2bn was raised in Scotland, or 8.4% of the UK total excluding oil revenues, while spending was £53.3bn or 9.6% of the UK total.
The figures emerged as it was revealed that UK Government borrowing reached £19.9bn in May bringing it to £30.5bn for the two months of this financial year.
Public sector borrowing is now more than double the level it was at the same stage 12 months ago and is expected to reach £175bn over the year as the recession hits tax revenues and spending on unemployment benefits soars piling further pressure on beleaguered Prime Minister Gordon Brown.
Shadow Chancellor George Osborne said: "These terrible borrowing figures show that Labour's debt crisis is getting worse.
"It is clear the government has lost control of the public finances, and the Prime Minister's ridiculous claim that Labour won't have to cut spending flies in the face of the facts."
However, Dave Prentis, general-secretary of the union Unison, said the level of borrowing should come as no surprise.
He added: "The government is only doing what it said it would, to help the country get through the recession.
"It is necessary to borrow now to keep the economy moving. We need to keep public services going for people who are relying on them for help through these tough times.
"The government should hold firm and resist calls for more cuts in public spending."
