The number of Scots who are members or registered supporters of Labour is at a 20-year high, Kezia Dugdale has said.
Labour accounts show a drop in income from membership and subscription fees, from £120,479 in 2015 to £108,024 in 2016.
Despite that, Ms Dugdale said the number of people who had joined the party or who had signed up as registered supporters, allowing them to vote in leadership contests, was higher than it has been since 1997 - the year Tony Blair swept to power.
Read more: UK 'reshaping' plans to be voted on at Scottish Labour conference
Membership is "strong", the Scottish Labour leader said, adding it was funding from them that paid for election campaigns.
However, Scottish Labour's overall income has gone from £1,073,108 in 2015 to £400,436 in 2016, according to the accounts.
It had a deficit of £103,966 last year, compared to a surplus of £98,177 in 2015.
Ms Dugdale told BBC Radio Scotland's Good Morning Scotland programme: "When political parties have conferences, they have to produce their annual accounts in the back of the programme.
Read more: UK 'reshaping' plans to be voted on at Scottish Labour conference
"What I'm immensely proud of is the Labour Party is funded by the union dues and the wages of ordinary workers, that's in stark contrast to the Tories who are funded by millionaires and, indeed, a stark contrast with the SNP who are funded by lottery winners and a bus tycoon with a record of homophobic remarks.
"I'm proud of the fact we've got a strong Labour Party membership in Scotland and it's the money that they pay into our party that pays for our elections campaigns
"We have in excess of 20,000 members and registered supporters of the Labour Party here in Scotland, it's higher now than I think it has been since 1997."
She also insisted she had "every faith" in UK leader Jeremy Corbyn's ability to win the next general election despite the party's loss in the Copeland by-election.
Read more: UK 'reshaping' plans to be voted on at Scottish Labour conference
Asked if Mr Corbyn could lead Labour to victory, Ms Dugdale - who backed his rival candidate Owen Smith in the 2016 leadership contest - replied: "Absolutely, yes, I've got every faith in Jeremy Corbyn.
"He has now won two election contests within the Labour Party.
"What people want to vote for is a united party and I'm fully behind Jeremy Corbyn in his efforts to renew and rebuild the Labour Party across the whole of the United Kingdom, just as I know that he supports my efforts here in Scotland, where I've got a long plan to renew the party's fortunes here."
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