Expenditure (Hansard, 23 July 1979)

§ Mr. Churchill
asked the Secretary of State for Defence what was the average percentage of gross national product devoted to defence in the years 1970–71 to 1973–74; by what percentage defence expenditure would have to be increased 99W to reach this level; and what would be the cost at current prices.

§ Mr. Pym
Using outturn figures, the average percentage of gross domestic product devoted to defence—NATO definition—over the period stated was 4.9; to reach that percentage this year the defence budget would need to be increased by 1.3 per cent.; and the cost would be about £120 million.

§ Mr. Churchill
asked the Secretary of State for Defence if he will itemise the

£ million Percentage of GDP

(a) Value added tax 395 0.21

(b) Duty 18 0.01

(c) Married accommodation 108 0.06

(d) Education 114 0.06

(e) Medical services (including welfare and social security) 153 0.08

(f) Service pensions 458 0.24

(g) and (h) The expenditures referred to at (a) to (f) above are all included in the national and NATO definitions of defence Expenditure. The total defence expenditure on NATO definition is now estimated at £9,295 million—4.9 per cent. Of GDP—in 1979–80.

	£ million	Percentage of GDP
(a) Value added tax	395	0.21
(b) Duty	18	0.01
(c) Married accommodation	108	0.06
(d) Education	114	0.06
(e) Medical services (including welfare and social security)	153	0.08
(f) Service pensions	458	0.24
(g) and (h) The expenditures referred to at (a) to (f) above are all included in the national and NATO definitions of defence Expenditure. The total defence expenditure on NATO definition is now estimated at £9,295 million—4.9 per cent. Of GDP—in 1979–80.