The Scottish Parliament and the public need greater scrutiny of the Scottish Government's budget, the Auditor General has said.

Following further devolution of tax powers, the government's budget was described as "increasingly complex" by Caroline Gardner in her annual report.

A fundemental review of Holyrood's budget process, which was established in 1999, has already been established by the parliament's finance committee.

Gardner's review includes around 90% of "consolidated spending" by the Scottish Government.

The report for Audit Scotland found total spending in 2015/16 was £33.3bn, which was £392m less than what was budgeted for.

The resource budget was underspent by £357m and capital by £355m.

The Auditor General said: "The construction and management of the Scottish budget is becoming increasingly complex and the Scottish Government has established a strong base to address the substantial changes and uncertainty affecting public finances.

"While recent developments show the Scottish Government is heading in the right direction, there's much still to do to ensure that the Scottish Parliament, and the public, have the information they need to fully understand and scrutinise the implementation of the new powers, especially the new tax and spending choices."

Gardner raised concerns over the Scottish Government's IT programme, Futures, which caused a delay to farmers receiving their Common Agricultural Payments from the European Union.

The government overspent on the Futures by 74% and the Auditor General judges it will not "achieve value for money".

Gardner warned that a loan programme set up by the government as a stop-gap measure had "introduced risk" to the budget, including a risk of duplicate or over-payments.

The watchdog chief also warned the country will lose out on £14m of European Union grant funding due to their suspension.

The funds were halted in 2015 due to a failure to adhere to European audit rules by the Scottish Government.

Gardner said the government had worked to have the suspensions lifted, however some deadlines had passed, meaning the £14m now could not be recovered.

This was described as "SNP incompetence" by the Scottish Conservatives.

The party's shadow finance secretary Murdo Fraser said: "This is an example of SNP incompetence which will cost the taxpayer £14m.

"That's simply not good enough and points to a Scottish Government which is struggling to do the basics.

"Not only has it been hauled across the coals for its failure to deliver CAP payments for farmers, now it's being taken to task over its infrastructure projects.

"Ministers need to explain urgently what they are going to do to address this, and how they will cope with Mackay's missing millions."

The findings of the report were welcomed by the Scottish Government.

Finance secretary Derek Mackay said: "This is the 11th consecutive year Audit Scotland has given the consolidated accounts a clean, unqualified audit and once again demonstrates our firm grip on Scotland's public finances.

"We recognise that Scotland's budget process needs to evolve to take account of the complexities and opportunities associated with the new powers, notably those relating to fiscal policy.

"That is why I have agreed a fundamental review of the budgetary process to ensure we develop a process that balances the time required for proportionate and effective parliamentary scrutiny with the need to ensure the information is based on the most up-to-date forecasts."