In its report on the Scottish Budget 2023-24, published today, the committee says that the focus of government should be on striking the right balance between responding to the immediate financial pressures and addressing longer-term fiscal challenges.
The committee has also called for clarity from the Scottish Government on how it intends to deliver public service reform, and from where in the public sector it intends to make reductions in headcount to pre-pandemic levels.
Finance and Public Administration Committee Convener Kenneth Gibson said:
“The Scottish Government’s focus on addressing the cost-of-living impact is understandable given the scale and immediacy of the challenge.
“The Committee also acknowledges the difficulties arising from soaring inflation this year and the knock-on implications for public sector pay and public spending overall.
“However, we would like to see evidence that the government is suitably focused on striking the right balance between responding to the immediate financial pressures and addressing long-term fiscal challenges.
"On the basis of evidence we’ve heard, the Committee wants to see more strategic long-term financial planning from the Scottish Government to ensure future fiscal sustainability. This includes how it will meet its public service reform and social security commitments.
“We also ask in our report, from where in the public sector reductions in headcount to pre-pandemic levels will be made, and to what timescales. Clarity and transparency around these issues are crucial, during what is an uncertain time for the public sector.
“It is clear from our scrutiny of the Scottish Budget 2023-24 that the Scottish Government is firefighting on a number of fronts.