Government Expenditure and Revenue Scotland (GERS) is an annual report published by the
Scottish Government. Its aim is to increase public understanding of
fiscal policy in Scotland, especially fiscal transfers to and from the
UK Exchequer. The report was first established in the early 1990s by the
Conservative UK Government. At that time Scotland received significantly more in public spending than it contributed in taxes, mainly because revenue from
North Sea Oil had declined from £12bn in 1984/85 to less than £1bn in 1991/92. Conservative politicians therefore wanted to quantify how generous the UK Government was towards Scotland. Oil revenues subsequently increased, however, which led to
Scottish National Party members of the
Scottish Government citing the GERS figures for the opposite reason. Much of the work is based on estimates, as significant amounts of public spending (e.g. defence or foreign affairs) are not easily identifiable by nation or region. Tax revenues are also estimated, as British tax returns do not require individuals or companies to state where within the UK that income was earned. Only items like stamp duty or council tax, which are based on physical property, can be accurately allocated.
