Celtic remain above Rangers after the first Old Firm derby of the season.
Celtic's wage budget remains a lot higher than Rangers' pay packets after two seasons in the Champions League group stages as well as winning the treble twice over.
The Hoops also smashed their club transfer record this summer, spending a whopping £9million to bring Odsonne Edouard to Parkhead on a permanent basis from French champions Paris Saint-Germain.
Heskey reckons finances are the difference between Celtic and Rangers and although he has been impressed with his former Liverpool teammate Steven Gerrard's start to life at Ibrox, he reckons the gap shall remain.
“I think that’s a bit premature," Heskey said, on Ranger catching Celtic. "Give him [Gerrard] a little bit of time and then possibly.
“They don’t have the spending power that Celtic have so you’ve got to give him a little bit of time just to get up to par. They were quite far off last season as well so I’m guessing they won’t be there for at least a year or two.”
Celtic sit in second in the Scottish Premiership table with three wins from four matches so far, while Rangers sit way back in seventh place after their worst start to the league in 29 years with only five points from four.
Rangers are expected to make that eight points on Saturday as they host Neil McCann's struggling Dundee at Ibrox, with The Dark Blues losing all four Scottish Premiership matches so far. Celtic play St. Mirren on Friday night.