Please follow the link below to a timeline showing the key stages in a standard year of the budget process. 

• The Scottish Budget Process - timeline of key events (20KB pdf posted 14.11.2007)

The process is divided into three distinct stages, as recommended by the Financial Issues Advisory Group (FIAG) and confirmed by written agreements between the Finance Committee and the Executive.  For more detailed information on the origins of the budget process please see the Budget Process - further information page (click link).

Stage 1 only takes place in a Spending Review year unless there is a Scottish Parliamentary election, as in 2007.  During Stage 1—

• The Scottish Government publishes its “Annual Evaluation Report” (AER).  This looks at progress against targets and some provisional spending plans.
• The Parliament’s subject committees make comments to the Finance Committee on the area for which they have responsibility (e.g. the Justice Committee scrutinises the Justice Department’s spending plans).
• The Finance Committee then makes recommendations to the Government in its Stage 1 Report.
• The report is debated by the Parliament, usually in June.

The main phases of Stage 2 are—

• The Scottish Government publishes its Draft Budget which contains firm spending plans for the following financial year, usually by 20 September. 
• Subject Committees again scrutinise the area of the budget relevant to their remit and report their findings to the Finance Committee.
• The Finance Committee publishes a report which can contain proposals for an alternative budget, but cannot increase the total spend proposed by the Government. 
• The Parliament debates a motion lodged by the Finance Committee on its report.

The third stage of the process provides Parliamentary authority for spending in Scotland for the following financial year.  The main points to note regarding Stage 3 are—

• The Scottish Government must introduce the Budget Bill by 20 January each year.
• While this is the third stage of the Budget Process, the Budget Bill also has three stages, in common with other Scottish Parliament legislation.
• As a result of the level of detailed scrutiny in Stages 1 and 2 of the budget process, the time allowed for passage of the Bill is shorter than for the passage of other bills.
• Only a member of the Scottish Government can propose amendments to the Budget Bill.
• Despite this, the Parliament can vote the Bill down in its entirety at Stage 1 or 3 of the Bill process.
• If the Budget Act is not in place by the end of the financial year, the Public Finance and Accountability (Scotland) Act 2000 allows for expenditure to continue at the same rate as the previous year for previously approved projects.

For more detailed information on the budget process, including on the origins and development of the three stage process outlined above, please follow the link below.

• The Budget Process - further information