Scotland will not be able to pay its own debt. A simple way of looking at this question is to go deep into the Scotland’s debt, deficit, revenue, and in a wider perspective, their economy. Scotland has very poor economy and she has been depending largely on United Kingdom for aids.
Looking at the debt the Scotland owes UK, in January 2012, the arrear was standing at £988.7bn excluding bank bailouts and when the bank bailout is included, the arrear totals to around £2,200bn. This arrear has never been paid to date. Settling this huge arrear is never possible with a young independent country if the referendum of their being independent will be passed in the year 2014.
The Scotland country’s income is far less than its income, this leaves the country with deficit and for it to meet its expenses, the country has to go for more loans. For example, in 2011-2012, Scotland’s estimated net fiscal balance was a deficit of £18.2 billion (14.6% of GDP) when excluding North Sea revenue, a deficit of £17.2 billion (13.5% of GDP) when including a per capita share of North Sea revenue or a deficit of £7.6 billion (5.0% of GDP) when a geographical share of North Sea revenue is included.
Apart from the North Sea oil which gives the country 90% revenue, the larger percentage of the left 10% comes from the investors from UK. If in any case Scotland becomes independent, the investors from UK may withdraw their investments which may be a set- back to the Scotland’s economy. Bearing in mind that higher market of Scotland’s product and services is in UK, they have been buying and selling in European countries like Belgium and Spain, just to mention a few, their independence will cut the link hence reducing country’s income and this will put the country in a position of not being able to manage its arrears.
The biggest thing for Scotland to have if they are to become independent nation is a debt management plan, which will provide them with some sort of target to aim towards reducing their deficit.