An analysis of the Scottish National Party's 1997 election budget proposals

Wood, Peter W. (1997) An analysis of the Scottish National Party's 1997 election budget proposals. Quarterly Economic Commentary, 22 (3). pp. 68-71. ISSN 0306-7866

[img]
Preview
Text (FEC_22_3_1997_WoodPW)
FEC_22_3_1997_WoodPW.pdf
Final Published Version

Download (278kB)| Preview

    Abstract

    During the 1997 Election campaign the Scottish National Party produced a hypothetical budget which argued that an independent Scotland could increase public spending and tax breaks by £1,000 million in 1997-98 over and above the levels planned by the then government while raising taxes on incomes and tobacco by only £200 million. Further, over the period to 2001, the budget proposed increased public expenditure and tax breaks of almost £6,000 million (equivalent to a public spending increase of 20%) with the overall tax burden being increased by a mere £80 million. The SNP argued that these tax and spending plans could be implemented while reducing the national debt below Scotland's share of the UK debt. It was further argued that the extra public spending would result in a dramatic increase in the growth of the economy. This economic perspective examines the SNP budget proposals and assess their practical viability.