The deficit gap leads to a large implied fiscal transfer in Scotland's favour
As detailed in the Fiscal Transfer section, the implied fiscal transfer is simply the deficit gap per head multiplied by Scotland's population.
This is an implied figure because it relies on one simple assumption: that Scotland assumes a liability for its population share of debt resulting from the UK's deficit. It is an accounting outcome, not a financing requirement. Scotland is not required to be fiscally autonomous under current constitutional arrangements, so the scale of Scotland's contribution to the UK's overall deficit has no direct fiscal implications either for Scotland's budget or for reserved spending on behalf of Scotland.