§ Mr. Gould
asked the Chancellor of the Exchequer whether he will publish in the Official Report, in relation to the operation of the financial guidelines for European Economic Community budgetary discipline, the ceilings for 1986 and 1987, the figures used in arriving at these ceilings, the estimated outturn for 1986 and the forecast for 1987.
§ Mr. Brooke
The Council's conclusions of 4 December 1984 on budgetary discipline, which were deposited in the Library of the House on 10 December 1984, provide that net expenditure on agricultural market support should increase by not more than the rate of growth of the own resources base. The method of calculation of the financial guideline on agricultural expenditure is set out in articles 2 to 4 of the conclusions. The base period for the comparison is the average of 1984 and 1985.
Calculation of financial guideline 1986 mecu 1987 mecu (a) Average expenditure in 1984–851 17,306.7 17,215.4 (b) Rate of growth in OR base (per cent.) 8.5 13.4 (c) (a) x (1+(b)) 18,778.0 19,526.0 (d) Expenditure excluded from guideline formula in respect of sugar and food aid2 1,841.0 2,123.0 (e) Financial guideline (EC 10) 20,619.0 21,649.0 (f) Plus expenditure on Spain3 and Portugal 567.0 1,312.0 (g) Financial guideline (EC 12) 21,186.0 22,961.0 1 The difference in figures reflects end of year adjustment. 2 This expenditure is excluded from calculations of the formula but added back for calculating expenditure consistent with the guideline in the appropriate year. 3 Following the accession of Spain and Portugal, the Council agreed to these additions.
The Ecofin Council on 7 July 1986 agreed that agricultural expenditure in 1986 could exceed the financial guideline by theamounts which can be justified mainly by the exceptional circumstances of the abnormally large depreciation of the dollar.The budget as finally adopted for 1986 increased expenditure from 21,012 mecu to 22,122 mecu. Final outturn figures for 1986 are not yet available.
A budget for 1987 has not yet been adopted.