Why the Student Awards Agency for Scotland has had its budget reduced by #141.7 million as detailed in Scotland's Budget Documents 2002-03.

The main reasons detailing the reduction in the budget of the Student Awards Agency for Scotland, amounting to £141.7 million, is set out in the following paragraphs. However, as all adjustments are being made in Annually Managed Expenditure, the amount available to SAAS for student loan purposes has not been reduced as a result of these technical accounting adjustments:The increase in the provision for bad debts, amounting to £104.8 milion, has been removed as being no longer required. The amount provided for in the existing Student Loan subsidy budget is now considered sufficient.Capital charges have been reduced by £50.4 million. As these have been taken into account in estimating the existing Student Loan subsidy, there is no need to make further provision.These adjustments amount to a reduction of £155.2 million. Together with various other upward adjustments within the Student Awards budget, the net effect is a reduction of £141.7 million.