In the past, most of the Scottish budget spending power came from a ‘block grant’ from Westminster (under Scotland Act 1998).
New tax and welfare powers have been added to the Scottish Parliament's responsibilities. Roughly half of the spending power of the Scottish budget now comes from taxes raised in Scotland (under Scotland Act 2016).
This means that the size of the Scottish budget will become more directly dependent on Scottish economic performance and tax receipts relative to the rest of the UK.
As a result of these new powers, the Scottish Parliament's Finance and Constitution Committee established a Budget Process Review Group to look at the budget process and suggest any changes. The group published its final report in June 2017 and made several recommendations.
The Finance and Constitution Committee and the Scottish Government have both accepted and implemented these recommendations.