§ 27. Sir B. Rhys Williamsasked the Chancellor of the Exchequer what provision was made in his budgeting plans for 1968–69 for the transfer of £200 million from the National Insurance (Reserve) Fund to the National Insurance Fund; and what steps he will take to offset the inflationary effects resulting from the disbursement of this money by the National Insurance Fund.
§ Mr. DiamondNone, Sir. As my right hon. Friend the Minister of State, Department of Health and Social Security, made clear to the House on 12th December last year, this transfer makes no difference to the amount of money to be paid out in benefits, and will have no inflationary effect.
§ Sir B. Rhys WilliamsWill not a number of competent observers, including the I.M.F., conclude that this is a way in which the Government have found it possible to increase expenditure without contravening the Chancellor's Budget statement that he was to limit capital drawings?
§ Mr. DiamondNo. The hon. Gentleman, if he will forgive my saying so, has completely misunderstood what has happened. It does not have any effect on public expenditure, it is merely like transferring money from one's deposit account to one's current account to put one's current account in funds.