Tax revenues raised by the Scottish Government are expected to fall to net-zero by 2021-22, according to a new report.
The Fraser of Allander Institute, projects that, as the money raised through income tax rises, the cash usually sent from Westminster in the block grant will reduce accordingly.
This would mean the Scottish Government would not make any extra revenue from taxation, but overall funding would not fall.
Labour and the Tories use the report to criticise the SNP handling of the economy.
Rhoda Grant Labour Finance Spokeswoman said: “If the SNP persist this report is clear that we have years of austerity and poor economic growth ahead.”
While Murdo Fraser Conservative Finance spokesman said: “This analysis exposes the SNP government as a high-tax, anti-business government which is damaging Scotland’s economy.”
However the spending pledges of Labour and Tories at a UK level are not deliverable, according to the Institute for Fiscal Studies.
Director Paul Johnson, said some of their announcements are “campaign rhetoric” .
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