Scotland's auditor general has called for transparency over public spending, as the coronavirus crisis has "made understanding the flow of public finances more complex than ever".
In a blog, published today by Audit Scotland, Stephen Boyle stated that the organisation will continue to promote proper scrutiny, focusing on what difference spending is making to support people through the health and economic impact.
The Scottish Government has been spending at unprecedented levels to combat Covid-19, with most of this supported by increased Scottish funding resulting from decisions by the UK Government - known as Barnett consequentials.
In 2020/21 this totalled £8.6bn. Scottish Ministers have committed to spending this in full on the Covid-19 response, and have redirected other parts of the Scottish budget, announcing total spending more than £9bn.
Provisional figures for 2020/21 show the Scottish Government spent £48bn against a revised budget of £48.5bn, with a £449m underspend - representing around 1%.
Last year's underspend is not lost to the Scottish budget, instead the Scottish Government is able to bank it in the Scotland Reserve to carry over and spend in this financial year.
A further £4.6bn of Covid funding from the UK Government has been allocated so far to Scotland to spend this year. However, unlike in 2020/21, this funding is not guaranteed, meaning that it can potentially fall as well as rise based on future UK spending decisions.
Boyle stated that financial pressures are both acute and unpredictable.
"Alongside the costs of an ongoing public health crisis, increased spending is also needed to address backlogs in the NHS and the courts, and help education and the economy recover.
"The challenges to maintaining the long-term health of the public finances pre-date the pandemic - a continued focus on medium and long-term financial measures, alongside immediate responses, is essential," he wrote.
Boyle argued that managing volatility in the financial position will continue to be difficult, and pressures on the public purse may accumulate.
"Having a clear picture of how Scottish Government and UK Government initiatives are working together as the pandemic response changes is needed to properly understand the effectiveness of Covid-19 measures and to identify financial pressures," the blog noted, adding that effective communication and cooperation between governments will be key.
Through Audit Scotland's ongoing Following the Pandemic Pound work programme, it is auditing Covid-19 public sector spending, assessing how much has been spent, and on what. Over the longer-term, it plans to assess what difference that spending has made.
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