Revenues from North Sea oil and gas fell from £8bn to £4bn in 2023/24 as Scotland's public spending deficit rose.
The annual Government Expenditure and Revenue Scotland (Gers) looks and taxes raised in Scotland as well as public spending for an on behalf of the country.
The latest figures show the deficit has increased to £22.7bn, a £3.6bn uplift from the year prior.
Scotland's revenue grew in 2023/24 by £1.7bn to £88.5bn, making up 8.1% of the UK total, similar its approximate 8% population share.
Spending increased to £111.2bn, up from £104.9bn.
Spending per person was £20,418, higher than the UK figure of £18,001, while revenue per person was £60 higher in Scotland than in the rest of the UK.
The total deficit north of the border is an estimated 10.4% of GDP, compared to 4.5% for the UK as a whole.
Oil revenues dip
The narrower deficit of £18billion in 2022-23 was helped by bumper revenue of £8billion from the North Sea as energy prices soared and the UK government imposed a profit levy on the industry.
That has already halved, and with the UK Labour government imposing even greater taxes on oil and gas there is concern that the output will decline more quickly than anticipated.
Russell Borthwick, chief executive at Aberdeen & Grampian Chamber of Commerce, said: “Today’s figures reflect what the industry has known for months; windfall conditions no longer exist in the North Sea.
“After taking near-record receipts in 2022-23, government revenues from the sector have halved in the intervening period. That reflects the realities of today’s oil and gas prices and the UK hitting a record low for domestic energy production last year.
“These figures also show increased rebates against trading losses and decommissioning spending - any ramp up of the windfall tax risks accelerating decommissioning and sharply increasing that burden. We urge the UK Government to instead pursue a policy which supports the industry and a managed transition towards clean energy.”
SNP blames Westminster
Finance secretary Shona Robison said the Gers figures is "not a reflection on the policies of the Scottish Government", rather a "reflection of UK Government choices".
"I welcome the fact that Scotland’s revenues grew last year, with those generated onshore growing faster than in the rest of the UK, thanks in part to our progressive approach to tax and the revenue from renewable energy," she said.
“As the report makes clear, the notional deficit is not a reflection on the finances or policies of the Scottish Government – it is a reflection of UK Government choices.
“It is also important to emphasise that these figures reflect Scotland status as part of the UK. As figures from the Office for National Statistics show, the UK economic model is driven by London and the South East of England. The UK Government retains control of 40% of expenditure and over 70% of revenues in Scotland. Indeed, a significant portion of the spending allocated to Scotland relates to servicing UK Government debt, which is paid at a higher rate than our European neighbours.
“As an independent nation, we would have the powers to make different choices. As it is, we are using all the powers we do have to deliver our priorities of growing the economy, investing in net zero, eradicating child poverty and delivering strong public services.”
Opposition blames SNP
The Scottish Tories say the figures deliver some " startling and inconvenient home truths" to the SNP.
Finance spokesperson Liz Smith said: "Despite record block grants, the SNP have squandered that funding settlement.
"Their financial mismanagement and waste has left Scots with higher taxes than anywhere else in the UK and brutal cuts to essential services."
Meanwhile, Scottish Labour's finance spokesperson - and North-east MSP - Michael Marra says the SNP need to move "beyond the division and focus on delivery".
He added: “On attainment in our schools and waiting times in our hospitals people deserve so much better. We need to drive waiting times down and attainment up."