Each side of the debate also sought to discredit the figures put forward by their opponents.
Scottish First Minister Alex Salmond said the Treasury's calculations had been "blown to smithereens", while Chief Secretary to the Treasury Danny Alexander accused SNP ministers of offering voters a "bogus bonus".
13% more tax needed to maintain independent Scotland public services, or...
11% cut in public services needed to keep current tax levels
£1.5bn-£2.7bn estimated cost of restructuring Scotland's institutions
Note: Figs relate to a 20-year period starting from 2016-17 Source: Treasury
A new Scottish government paper said an independent Scotland would begin life with its public finances in a "strong" position, and could see its economy £5bn per year better off by 2029-30.
Mr Salmond said Scotland was one of the world's wealthiest countries, but needed the powers of independence to realise its full potential.
He told the BBC: "We put forward the benefit over a period of 15 years. We calculate that as each individual in Scotland being £1,000 better off - that's a £5bn bonus, or a family £2,000 better off a year."
The Scottish government paper said:
Scotland's finances in 2016-17 will be similar to, or stronger than, both the UK and the G7 industrialised countries as a whole.
Scotland's public finances show debt on a downward trajectory, enabling future Scottish governments to start an oil savings fund.
Scotland's estimated debt to GDP ratio in 2016-17 is forecast to be lower than the UK's under any potential outcome of negotiation with the UK over public sector assets and liabilities.
Scotland's fiscal position between 2008-09 and 2012-13 is estimated to have been worth £8.3bn, equivalent to £1,600 per person.
An independent Scotland could see tax income increase by £2,4bn a year by 2029-30, under a predicted 0.3% productivity increase.
A 3.3% increase in Scotland's employment rate would move it up to the level of the top five performing countries in the OECD and could increase revenues by £1.3bn a year, by 2029-30.
14% increase in oil and gas production between 2013-18
Tax receipts currently 14% higher in Scotland than UK
Source: Scottish government
The first minister said his government's calculations were "based on reason and logic", as he hit out at UK government claims it could cost up to £2.7bn for an independent Scotland to set up the public bodies it needed, which made use of London School of Economics research.
LSE academic Patrick Dunleavy later posted on his Twitter account: "UK Treasury press release on Scotland costs of government badly misrepresents LSE research."
Mr Salmond added: "Danny Alexander's calculations have been blown to smithereens, because the Treasury relied on the work of the LSE professor, Professor Dunleavy, who this morning has accused them of grossly misrepresenting his work."
But Mr Alexander branded the Scottish government's £5bn figure a "bogus bonus", adding: "They're desperately trying to distract attention from that fundamental question, that there simply wouldn't be the same level of resources available for public services if Scotland were independent."
The Treasury published its own paper outlining what the UK government sees as challenges to an independent Scotland, including an ageing population, declining oil revenues and the potential for higher interest rates.
Scotland in numbers
What is Scotland's population?
What is Scotland's share of the national debt?
How does pay in Scotland compare with England, Wales and NI?
Mr Alexander said: "Today we have shown that, by staying together, Scotland's future will be safer, with stronger finances and a more progressive society.
"Because as a United Kingdom we can pool resources and share risks. It means a UK dividend of £1,400 a year for every man, woman and child in Scotland.
"That dividend is our share of a more prosperous future. It is the money that will pay for better public services and a fairer society."
The Treasury analysis said:
Scotland, as part of the UK, was projected to be able to have lower tax or higher spending than under independence. This "UK Dividend" is estimated to be worth £1,400 per person in Scotland in each year from 2016-17 onwards.
Under independence, the loss of the UK Dividend would mean £1,400 per year for each Scottish person in higher taxes and lower public spending.
The "direct costs" of independence would include higher interest rates for an independent Scottish state to borrow, the net costs of setting up new institutions, and the net costs of funding the Scottish government's White Paper policies (including the potential economic benefits).
If the UK debt was split according to population at the end of 2015-16, an independent Scotland would take on debt of about 74% of its GDP, which could reach "unsustainable levels without policy action".
ANALYSIS - BBC Scotland political editor Brian Taylor
What is the £1,400 Union dividend?
Well, the UK Treasury says it's per person and would come into play at the onset of independence. It takes into account higher public spending borne by Scotland alone; lower oil revenues than Scottish government forecasts; a disproportionately ageing population; set-up costs of independence and the net effect of policies in the White Paper, such as a reduction in corporation tax. To counter that, Scotland would benefit from having a geographical share of North Sea oil, rather than having it shared across the UK as a whole.
So, what is the breakdown per head? The first six figures show costs to be added to Scotland's account (hence the plus). The seventh, about oil share, is a cost to be removed from Scotland's account (hence the negative).
Lower UK borrowing +£47
Set-up costs and net effects of Work and Pensions policies avoided +£261
Police Scotland has submitted its initial report on the investigation into the bin lorry crash in Glasgow last month to the Crown Office.
Six people were killed and several injured following the crash on 22 December, close to George Square.
The Crown say they will now consider the report. They say they will give further information regarding the timescale of further investigations required for any criminal proceedings or Fatal Accident Inquiry by the end of February.
Manager Derek McInnes hopes the experience of winning the Scottish League Cup last season will help his Aberdeen players retain it.
The Dons beat Inverness last March to lift their first trophy since 1995 and that could aid the Reds in Saturday's semi-final against Dundee United.
Global icon Nessie is poised to take centre stage in a new £2m advertising campaign aimed at promoting all Scotland has to offer to foreign visitors.
This beat 'friends who continue to use their mobile in social situations' with 60% and 'playing loud music on mobile phones' with 51%.
The survey of over 2000 UK adults by www.mobiles.co.uk reveals "text speak" in other communications (for example using "u" instead of "you" when e-mailing) is classed as an annoying habit by 42%. While 34% find texting while walking irritating.
Reevel in Glasgow passed on this picture of his dog Molly enjoying the snow.
Ringing the changes on Edinburgh's Royal Mile: Old red phone boxes replaced with a refurbished box containing an ATM.
Ministers have been urged to step in to block the extradition of an American musician based at Scotland's famous academy of music and drama.
Dr Steve Forman is a US citizen who works at the Royal Conservatoire and who won indefinite leave to remain in the UK after a public campaign last year.
But Glasgow North MP Ann McKechin says the Home Office has applied to appeal the decision by the Immigration Tribunal.
She's says she written to the Scottish Secretary asking him to intervene, over the "outrageous" move which is a "bitter blow to Dr Forman".
Here is a look at the #A830 at Morar (South of Mallaig) heavy snow in the area with low visibility!
This photo was sent in by Brian Cairns, who says: "Unlike Edinburgh, tram line clearance in Coatbridge is a one-man show."
Stewart Roberts captured this scene while walking his dog near West Linton.
The principal of a Scottish university has said that students who fail their degrees could get rebates on fees paid.
Prof Craig Mahoney said the University of the West of Scotland (UWS) was looking at concepts such as a rebate system and guaranteeing students paid employment beyond their degree.
He said such moves may be necessary in the face of increased competition.
The world's biggest distiller of Scotch whisky has reported a sharp fall in sales in some of its key markets.
Diageo said profits in the second half of last year fell by 18% to £1.7bn, while overall sales were down 1%.
The warnings will remain in place for northern and western regions of the country for Saturday and Sunday.
Showers of sleet, snow and hail are expected to continue through Thursday and Friday morning, with a risk of further snow in particular over higher grounds. Between 1-3cm of further snow could fall on lower levels.
Further snow and strong winds are forecast for the north and west of Scotland on Saturday and Sunday.
An elderly lollipop man has been left 'too distressed and shaken' to return to work after a man pushed him to the ground and stole his stick.
Footage released by West Midlands police shows the culprit crossing the road as the 82-year-old stops traffic, the thug then grabs hold of the lollipop stick dragging the man with him before he falls to the ground.
Ian Smithson sent us this picture of a crash on icy roads in Edinburgh.
#GoodNews #M9 is now *OPEN* btw J5 & J6 after overturned cattle lorry. All animals clear from the carriageway & all lanes running #DriveSafe
Inverness Airport has re-opened after snow and ice caused disruption to flights this morning.
The closure has resulted in delays to and cancellations of a number of early morning services.
Andy Murray is in the final of the Australian Open.
FMQs (recorded) coverage on TV will now be delayed until 12:15 on BBC2, when the tennis will switch to BBC1 Scot. #AusOpen
A 61-year-old woman has been attacked and robbed of her car by a hooded man in the Leith area of Edinburgh.
The incident happened at about 11:30 on Wednesday when the man approached the woman in Jane Street and asked for directions.
It's almost that time again. Scottish first minister's questions begins at Holyrood from noon. What might come up today? Your guess is as good as mine.
Labour has been routinely raising the NHS, but fracking, weather and the publication (or not) of the Chilcot Report into the Iraq war may come up. A few of the MSPs might be distracted if Andy Murray's still playing - they better hope the presiding officer doesn't catch them.
A creel boat skipper missing in the North Sea with his grandson for two days has been heavily criticised by marine accident investigators.
75-year-old Jim Reid and 35-year-old David Irvine told how they survived on just two biscuits as they got lost in fog after leaving the Aberdeenshire port of Gourdon in May last year.
Their 16ft boat, the Water Rail, sank while being towed back to Montrose by the local lifeboat
A huge air and sea search had been called when they were eventually rescued by a passing fishing boat 45 miles off Montrose.
The Marine Accidents Investigation Branch says Mr Reid lacked the competence necessary to operate his boat safely. There was no radio on board and the compass was faulty.
Kevin Buchan in West Calder wonders if it is barbecue weather.
The mythical Loch Ness Monster is to take centre stage in a new £2m advertising campaign aimed at promoting the Loch Ness area to foreign visitors.
The drive by VisitBritain will be targeted at key overseas markets.
It aims to increase the number of international tourists to Loch Ness and other nearby places such as Inverness by 50,000 over the next four years. Inverness, Loch Ness and surrounding areas already draw about 200,000 tourists a year.
#M9 is *CLOSED* btwn J5 and J6 due to overturned cattle lorry. Animals are live on the route so please AVOID if possible.
A woman was airlifted to hospital last night after being rescued in a forest near Innerleithen in the Scottish Borders.
Mountain Rescue Team praised rescue dog Rauour who's sensitive nose helped locate the missing woman
Tweed Valley Mountain Rescue Team was called out at around 17:00, and found the woman around three hours later.
The woman, who was unconscious, was located around ten metres off a forest track, as weather conditions started to worsen.
Some of the world's biggest oil firms are to meet monthly in a bid to create job opportunities for workers in the North-east who have been made redundant.
The first meeting of Scotland's Energy Jobs Taskforce, set up by First Minister Nicola Sturgeon, discussed how best to safeguard jobs in the North-east oil and gas sector.
And Kezia Dugdale agrees, it's time for tennis: @RuthDavidsonMSP @NicolaSturgeon yes, there in a minute, looking for the Pimms
#A75 partially blocked hazardous driving conditions, snow between B725 (Carrutherstown) and B721 (Newbie). A number of lorries are stuck
There is actually a lot of widespread disruption now. A lot of untreated back roads in the west of the region that are hazardous this morning.
A lot of people telling me that they are getting to where they need to go, it's just taking them a lot longer.
That seems to be the overall picture at the moment.
We have had quite a bit more snow since just after 06:00 this morning - probably here in Dumfries another inch or so of snow.
Quite a lot of snow lying on power lines. No reports of any power problems in the region at the moment, but that one that we will be definitely keeping an eye on.
A little more snow has fallen since 06:00 this morning but police in Inverness are describing the roads across the north as generally "passable with care" - they have been no incidents reported so far.
There's certainly quite a bit of snow on the route but roads all look pretty clear.
While some schools are being closed across the Highland area, some of the bigger schools such as Charleston Academy in Inverness and Nairn Academy will open a little later due to weather affecting school transport.
In Moray there seems to be no snow problems.
#A75 btwn Annan and Carrutherstown - @ScotTranserv has treated E/B and now working on the W/B. HGV's still stuck in the area. #BeAware
Yolanda Preston posts: Believe it or not there's my car under there!
That's a lot of snow! Be careful in kilsyth as roads really slippy and not cleared and M80 moving slow! There's nothing in Stirling compared to Glasgow! Took me an hour to get to work this morning! #traumatic
Transport: no buses to Calderhead HS, McGregors bus to Glencryan School cancelled.
Thursday schools update: Skipness primary school is closed today
Speaking on Good Morning Scotland Transport Minister Derek McKay said: "There've been a few incidents overnight but they've been cleared and the traffic systems have still been working well.
"Even at the moment, during typical peak hour traffic the road network is still flowing fairly well.
"There is one issue at the M8 plantation eastbound but its still passable with care, and I think we've prepared very well for the weather and the snow.
"With 180+ gritters out, we've worked very hard to prepare the roads for these conditions."
Earlier accident #GW #M8 eastbound at plantation causing a ten mile tailback to erskine bridge.
29 schools and nurseries shut in the Highlands. The closures involve 4,795 pupils.
The decision by the Scottish government to announce a moratorium on fracking dominates front pages in The Scotsman and The National.
Elsewhere, the Scottish Daily Mail leads with the story of councils using anti-terror laws "to spy on dog walkers, tanning salons and shops selling fireworks".
An axe killer walking the streets four years after being detained without limit of time is the lead story in the Daily Record. The Herald claims fee-paying students at the University of the West of Scotland are to be offered their money back if they fail to graduate.
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