SCOTTISH OFFICE 1
                                                 17 March 1998
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EXTRA INVESTMENT IN SCOTLAND ON KEY PRIORITIES

Donald Dewar, Secretary of State for Scotland, warmly welcomed
today's Budget announcement which  provides over 70 million
pounds extra investment to meet  the Government's key 
priorities in Scotland  in 1998-99.  

A further 44.5 million pounds is being provided to enhance the
performance of Scotland's NHS. This  brings the total
additional money the Government has allocated for Health in
Scotland to over 150 million pounds in 1998-99.  Because of
the Government's prudent management of public expenditure this
year, it is able to allocate additional investment to its key
priorities.

21.4 million pounds is to be provided for schools and the
enhancement of skills. This brings the total additional money
the Government has allocated to education in Scotland to over
137 million pounds in 1998-99. 

Over 800,000 pounds is to be provided to establish the
Scottish University for Industry.

4.5 million pounds is provided to improve rural transport
facilities in Scotland.

Scotland is also set to benefit from the Chancellor's  "New
Deal for  Communities" Initiative and will get  1.3 million
pounds to undertake in the pathfinder projects.

Welcoming this new package, Donald Dewar said: "I am delighted
that, through our prudent management of public finances, we
are able to release these extra funds. They mean we can take
another step towards delivering our manifesto commitments to
improve the Health Service in Scotland and raise standards in
Scottish schools. And they let us make a start on our
imaginative plans for a University for Industry and for
re-building our most deprived communities."       

NOTES FOR EDITORS

1.     Scotland's share of the extra funding has been
determined on the basis of the Barnett formula; this provides
for Scotland to receive a percentage of the cash increases to
comparable programmes in England and Wales. In last July's
Budget Scotland gained 106.6 million pounds additional
provision  for health and 115.7 million pounds for  education
in 1998-99.






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