HC Deb 24 February 1992 vol 204 c366W
Mr. Nicholas Brown

To ask the Chancellor of the Exchequer what is the latest estimate of the amount of revenue that would accrue to the Government from fiscal drag if the tax system were simply indexed in the 1992 Budget, in the United Kingdom.

Mr. Maude

The amount of real fiscal drag that accrues to the Government in any one year depends on the rate of growth of the economy and on the composition of demand. But on average over a cycle it might be expected to raise the ratio of tax receipts to GDP by about 0.2 percentage points per year.

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