Financial Framework
Expenditure of the Scottish Government forms part of the national accounts. As a result it has separate budgets for capital and revenue expenditure. This separation is reflected in the funding the Scottish Government provides to local authorities.
The expenditure of local authorities is reported in their accounts which are based on International Financial Reporting Standards. Although many transactions are treated in the same way in local authority accounts and national accounts, there are differences.
This report provides detailed information on the control framework within which the Scottish Government operates, and identifies the differences in the treatment of certain types of expenditure in the national accounts and local authority accounts.