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Public Expenditure

Volume 960: debated on Friday 19 January 1979

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asked the Chancellor of the Exchequer (1) if he will publish in theOfficial Reporta table showing public expenditure, defined as in Command Paper No. 7049, as a percentage of (a) gross domestic product at factor cost, (b) gross domestic product at market prices and (c) gross national product, from the earliest available financial year to 1978–79, giving estimated figures when final figures are not yet available;(2) if he will publish in the

Official Reporta table showing public expenditure, as defined before Command Paper No. 6721, as a percentage of ( a) gross domestic product at factor cost, ( b) gross domestic product at market prices, and ( c) gross national product from the earliest available financial year to 1978–79, giving estimated figures when final figures are not yet available;

(3) if he will publish in the Official Reporta table showing public expenditure, as defined in Command Paper No. 6721, as a percentage of ( a) gross domestic product at factor cost, ( b) gross domestic product at market prices, and ( c) gross domestic product from the earliest available financial year to 1978–79, giving estimated figures when final figures are not yet available;

(4) if he will publish in the Official Reporta table showing, for each year since 1945 and giving estimated figures when final figures are not yet available ( a) public expenditure, defined as in Command Paper No. 7049, ( b) public expenditure, defined as in Command Paper No. 7049 in terms of 1977 prices, ( c) public expenditure, defined as in Command Paper No. 7049, in terms of 1975 prices, ( d) public expenditure defined as in Command Paper No. 7049 per head of population, ( e) public expenditure, defined as in Command Paper No. 7049, in terms of 1977 prices per head of population and ( f) public expenditure, defined as in Command Paper No. 7049 in terms of 1975 prices per head of population;

(5) if he will publish in the Official Reporta table showing, for each year since 1945 and giving estimated figures when final figures are not yet available ( a) public expenditure as defined before Command Paper No. 6721, ( b) public expenditure as defined before Command Paper No. 6721 in terms of 1977 prices, ( c) public expenditure, as defined before Command Paper No. 6721 in terms of 1975 prices, ( d) public expenditure, as defined before Command Paper No. 6721 per head of population, ( e) public expenditure, as defined before Command Paper No. 6721 in terms of 1977 prices per head of population and ( f) public

expenditure, as defined before Command Paper No. 6721, in terms of 1975 prices per head of population;

(6) if he will publish in the Official Reporta table showing, for each year since 1945 and giving estimated figures when final figures are not yet available ( a) public expenditure, defined as in Command Paper No. 6721, ( b) public expenditure, defined as in Command Paper No. 6721 in terms of 1977 prices, ( c) public expenditure, defined as in Command Paper No. 6721 in terms of 1975 prices, ( d) public expenditure, as defined in Command Paper No. 6721 in terms of 1977 prices, ( e) public expenditure, defined as in Command Paper No. 6721 in terms of 1975 prices per head of population and ( f) public expenditure, defined as in Command Paper No. 6721, in terms of 1977 prices per head of population;

(7) if he will publish in the Official Reporta table showing for each year since 1945 and giving estimated figures when final figures are not yet available ( a) percentage increase or decrease over previous year in public expenditure, defined as in Command Paper No. 6721, ( b) percentage increase or decrease over previous year in public expenditure defined as in Command Paper No. 6721 in terms of 1975 prices, ( c) percentage increase or decrease over previous year in public expenditure defined as in Command Paper No. 6721 in terms of 1977 prices, ( d) increase or decrease over previous year in public expenditure, defined in Command Paper No. 6721 in terms of 1975 prices per head of population and ( e) increase or decrease over previous year in public expenditure defined as in Command Paper No. 6721 per head of population in terms of 1977 prices;

(8) if he will publish in the Official Reporta table showing for each year since 1945 and giving estimated figures when final figures are not yet available ( a) percentage increase or decrease over previous year in public expenditure, as defined before Command Paper No. 6721, ( b) percentage increase or decrease over previous year in public expenditure as defined before Command Paper No. 6721 in terms of 1975 prices, ( c) percentage increase or decrease over previous year in public expenditure as defined before Command Paper No. 6721 in terms of 1977 prices, ( d) increase or decrease over previous year in public expenditure, as

defined before Command Paper No. 6721 per head of population, ( e) increase or decrease over previous year in public expenditure as defined before Command Paper No. 6721 per head of population in terms of 1975 prices and ( f) increase or decrease over previous year in public expenditure as defined before Command Paper No. 6721 in terms of 1977 prices per head of population;

(9) if he will publish in the Official Reporta table showing for each year since 1945 and giving estimated figures when final figures are not yet available ( a) percentage increase or decrease over previous year in public expenditure, as defined in Command Paper No. 7049, ( b) percentage increase or decrease over previous year in public expenditure, as defined in Command Paper No. 7049 in terms of 1975 prices, ( c) percentage increase or decrease over previous year in public expenditure, as defined in Command Paper No. 7049 in terms of 1977 prices, ( d) increase or decrease over previous year in public expenditure, as defined in Command Paper No. 7049 per head of population, ( e) increase or decrease over previous year in public expenditure, as defined in Command Paper No. 7049 per head of population in terms of 1977 prices;

Public expenditure*£ million at outturn prices

As defined in Cmnd. 6393

As defined in Cmnd. 6721

As defined in Cmnd. 7049

Population mid-year estimates millions

19464,582nana49 ·2
19474,327nana49·5
19484,577nana50·0
19494,816nana50·3
19504,880nana50·6
19515,852nana50·6
19526,455nana50·7
19536,706nana50·9
19546,641nana51·1
19557,060nana51·2
19567,500NaNa51·4
19577,904nana51·7
19588,255nana51·9
19598,7438,0338,01152·2
19609,3608,4688,44752·6
196110,2749,2059,19653·0
197210,9609,7619,74053·4
196311,60210,35010,31853·7
196412,70511,30511,29354·0
196514,07412,54612,52354·4
196615,24013,56713,53254·7
196717,43515,68715,65554·9
196819,01517,18917,14055·2
196919,67217,62817,58455·4

(10) whether he will list the various changes made to the definition of public expenditure in Command Paper No 6721 and estimate for each change the effect on ( a) public expenditure as a percentage of gross domestic product at factor cost, ( b) public expenditure as a percentage of gross domestic product at market prices and ( c) public expenditure as a percentage of gross national product;

(11) whether he will list the various changes made to the definition of public expenditure in Command Paper No. 7049 and estimate for each change the effect on ( a) public expenditure as a percentage of gross domestic product at factor cost, ( b) public expenditure as a percentage of gross domestic product at market prices and ( c) public expenditure as a percentage of gross national product.

The table shows public expenditure on each of the three definitions requested, at outturn prices. An allowance for the imputed charge for the consumption of non-trading capital, which is not included in any White Paper definition of public expenditure, has also been added in order to make the estimates comparable with figures for gross domestic product. Comprehensive estimates at constant prices are not available. Mid-year estimates of the total United Kingdom population are also shown in the table.

Public expenditure*£ million at outturn prices

As defined estimates in Cmnd. 6393

As defined in Cmnd. 6721

As defined in Cmnd. 7049

Population mid-year millions

197021,73119,23419,20355 ·5
197124,21821,57921,52455 ·7
197227,09024,42824,36355 ·9
197332,27228,46328,39256 ·0
197442,21336,63336,58956 ·0
197554,84648,35548,24156 ·0
197663,20154,87154,72556 ·0
197766,95957,88357,71055 ·9

* Based on national accounts records and including non-trading capital consumption. na Not available.

The ratios and percentage changes requested may be obtained by using figures in the above table together with published information. Figures for gross domestic product at factor cost on an expenditure basis and gross national product on an income basis can be obtained from "Economic Trends Annual Supplement 1979 edition "pages 9 and 34 respectively. Estimates of gross domestic product at market prices may be obtained from the former table by adding taxes on expenditure and subtracting subsidies from the figures of gross domestic product at factor cost.

The changes made in the definition of public expenditure are listed in both Cmnd. 6721 and Cmnd. 7049. The total effect at outturn prices of these changes can be derived from the differences between the first three columns of the table. Individual effects are not available.

asked the Chancellor of the Exchequer (1) whether he will publish a table showing general Government expenditure on the definition used before Cmnd. Paper No. 6721 for each year since 1945 and giving estimated figures when final figures are not yet available as a percentage of (a) gross domestic product at factor cost, (b) gross domestic product at market prices and (c) gross national product;(2) whether he will publish a table showing general Government expenditure on the definition used when Cmnd. Paper No. 6721 was published, for each year since 1945 and giving estimated figures when final figures are not yet available as a percentage of (

a) gross domestic product at factor cost, ( b) gross domestic product at market prices and ( c) gross national product;

(3) whether he will publish a table showing general Government expenditure on the definition used when Cmnd. Paper No. 7049 was published for each year since 1945 and giving estimated figures when final figures are not yet available as a percentage of ( a) gross domestic product at factor cost, ( b) gross domestic product at market prices and ( c) gross national product;

(4) if he will publish in the Official Reporta table showing for each year since 1945 and giving estimated figures when final figures are not yet available, total central Government expenditure on goods and services as per table 12 of Cmnd. Paper No. 7049 as a percentage of ( a) gross domestic product at factor cost, ( b) gross domestic product at market prices and ( c) gross national product;

(5) if he will publish in the Official Reporta table showing for each year since 1945 and giving estimated figures when final figures are not yet available, total local authority expenditure on goods and services as per table 12 of Cmnd. Paper No. 7049 as a percentage of ( a) gross domestic product at factor cost, ( b) gross domestic product at market prices and ( c) gross national product;

(6) if he will publish in the Official Reporta table showing for each year since 1945 and giving estimated figures when final figures are not yet available, total central Government expenditure on goods and services as per table 12 of Cmnd. Paper No. 7049 per head of population;

(7) if he will publish in the Official Reporta table showing for each year since 1945 and giving estimated figures when final figures are not yet available, total local authority expenditure on goods and services as per table 12 of

Command Paper No. 7049 per head of population.

"General Government expenditure" is a national income accounting term denoting the consolidated expenditure of the central Government and local authority sectors. This definition has not been directly affected by the changes in the definition of public expenditure referred to. Figures for total general Government expenditure in national income accounts terms are published in "Economic Trends Annual Supplement 1979 edition "—page 135. Figures on a comparable basis for central Government and local authorities expenditure on goods and services are shown in the table below.

Expenditure on Goods and Services*
£ million
Central GovernmentLocal authorities
19461,748638
19471,239846
19481,338940
19491,526971
19501,5621,020
19512,1701,144
19522,4991,290
19532,5771,395
19542,4231,415
19552,4441,473
19562,6961,587
19572,7581,687
19582,7831,732
19592,9431,852
19603,0911,958
19613,2722,195
19623,4432,462
19633,5592,683
19643,8213,042
19654,2543,332
19664,4603,746
19674,9194,266
19685,2304,616
19695,3814,880
19706,0315,407
19716,8026,028
19727,5806,823
19738,5938,442
197410,94210,074
197514,51813,476
197617,16614,937
197718,68515,377
Source: National accounts records
The ratios required can be obtained from figures in the above table together with published information on gross domestic product, gross national product and population. I have given the sources of this information together with population estimates in answer to an earlier Question today from the hon. Member.

asked the Chancellor of the Exchequer if he will publish in theOfficial Reporta table showing for each year since 1945 and giving estimated figures when final figures are not yet available,(a)the percentage of expenditure, as defined in Command Paper No. 7049, devoted to wages and salaries, (b) the percentage of public expenditure, as defined before Command Paper No. 6721, devoted to wages and salaries and (c) the percentage of public expenditure, as defined in Command Paper No. 6721, devoted to wages and salaries.

The figures of the wages and salaries component of public expenditure are shown in the table below. They exclude the wages and salaries element of the capital expenditure of those public expenditure as these figures are not available. The figures include employers' contribution to national insurance and to occupational pension schemes and, in the case of pension schemes such as those for the Armed Forces and civil servants, actual pensions paid.

public expenditure on wages and salaries*
£million
19531,532
19541,631
19551,722
19561,893
19572,014
19582,117
19592,244
19602,407
19612,575
19622,762
19632,977
19643,215
19653,531
19663,844
19674,161
19684,460
19694,769
19705,471
19716,443
19727,528
19738,501
197410,626
197514,931
197617,068
197718,293
*Based on national account records. Figures prior to 1953 are not available.
The ratios required can be obtained from the above figures and figures for public expenditure on each of the three definitions given in answer to an earlier Question today from the hon. Member.