§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what is his latest estimate of public expenditure, as defined before Cmnd. 6721, as a percentage of gross domestic product at factor cost in the financial years 1957–58, 1970–71, 1973–74, 1976–77, 1977–78 and 1978–79; and what is his forecast of the corresponding percentage for the financial year 1979–80 following the Budget changes.
§ Mr. Biffen, pursuant to his reply [Official Report, 18 June 1979], gave the following answer:
The definition of public expenditure in use till late in 1976 was broader than that now in use Moreover, in expressing public expenditure as a ratio to gross domestic product the latter is now normally measured at market prices rather than at factor cost for consistency with the measurement of public expenditure Estimates to 1978–79 on the old basis requested are provided in the following table. The ratio is not expected to change much in 1979–80: the exclusion of indirect tax from the denominator tends to raise it.
PUBLIC EXPENDITURE AS DEFINED IN CMND. 6393 OF FEBRUARY 1976 As a percentage of gross domestic product at factor cost 1957–58 41 1970–71 51½ 1973–74 52½ 1976–77 57½ 1977–78 53½ 1978–79 (estimated) 54½