Scotland's deficit fell to £13.3bn for 2016/17 amid an increase in oil and gas revenues, according to new figures.

The Government Expenditure and Revenue Scotland (GERS) statistics show a deficit of £13.3bn when a geographic share of North Sea revenues is allocated to Scotland.

That amounts to 8.3% of Scottish GDP, which is more than triple the UK-wide proportional deficit of 2.4%.

North Sea revenue rose from £56m in 2015/16 to £208m, reflecting an increase in total UK oil and gas revenues.

Dr Graeme Roy, from the Fraser Allander Institute, said the figures show "the largest relative gap" in Scottish and UK deficits "since the GERS figures started to be published on a consistent basis back to 1998-99".

The figures were welcomed by the First Minister, despite figures from her party criticising the report's worthiness to the debate on independence in recent weeks.

Sturgeon said: "Scotland's economy remains strong. In the last quarter, our economy grew nearly four times faster than the UK and the number of people in employment is at a record high.

"These figures reflect Scotland's finances under current constitutional arrangements. However, they show that our investment in key industries, such as the life-science sector, is providing a real boost to our onshore economy.

"By continuing to invest in key sectors, we will ensure Scotland remains a productive and competitive country."

She added: "The lower oil price had an impact on North Sea revenues and the wider economy last year.

"However, it is encouraging to see an improvement in the overall fiscal balance and that onshore revenues grew at their fastest rate in nearly 20 years.

"However, our long-term economic success is now threatened by Brexit, which risks reducing household incomes, employment and funding for public services."

The figures also show Scotland's onshore revenues increased by £3.3bn.

Last year's figures put the Scottish budget deficit at £14.8bn.

Scottish secretary David Mundell said: "These figures from the Scottish Government are a cause for concern and show clearly there is still much to be done to improve Scotland's economy.

"They also highlight the value of pooling and sharing resources around the UK. Being part of a strong UK has protected our living standards and that's one reason the people of Scotland clearly rejected Nicola Sturgeon's plan for a second independence referendum at the election.

"Scotland's deficit is falling at a slower rate than the UK as a whole and economic growth is lagging behind. It is vital we grow the economy and we want to work with the Scottish Government to achieve that."