Defence Costs (Hansard, 25 November 1969)

§ Mr. Gwynfor Evans
asked the Secretary of State for Defence what percentage of the gross national product and of the annual budget, respectively, defence costs represent in each of the years from 1964 to 1970.

§ Mr. Healey
Calendar year figures are not readily available. Those for the financial years 1964–65 to 1969–70 are set out below. Between 1964–65 and 1969–70 the defence budget's share of total public expenditure has declined by 25 per cent. and its share of gross national product at factor cost by over 10 per cent. Regarding 1970–71, I would ask the hon. Member to await the publication of the forthcoming White Paper on Public Expenditure and of the Statement on the Defence Estimates 1970.

Defence Budget Expenditure as a proportion of:

Total Public Expenditure^* Gross National Product at Factor Cost†

Per cent. Per cent.

1964–65 … 14.9 6.5

1965–66 … 14.2 6.5

1966–67 … 13.4 6.4

1967–68 … 12.3 6.3

1968–69 … 11.8 6.1

1969–70 … 11.1 5.8

^* For the years 1964–65 to 1968–69, the proportions are based on expenditure recorded in the Treasury analysis of public expenditure in the 1969 Blue Book on National Income and Expenditure. For the year 1969–70, the proportion is based on estimates provided in the Financial Statement and Budget Report 1969–70.

† Proportions are based on the latest valuation of Gross National Product. In the case of 1969–70 the Defence Budget estimate has been used as a basis for the calculation.

§ Mr. Gwynfor Evans
asked the Secretary of State for Defence what is the estimated proportion of the defence costs which will be spent in 1969–70 in foreign currency.

§ Mr. Healey
About 12 per cent.

		Defence Budget Expenditure as a proportion of:
		Total Public Expenditure^*	Gross National Product at Factor Cost†
		Per cent.	Per cent.
1964–65	…	14.9	6.5
1965–66	…	14.2	6.5
1966–67	…	13.4	6.4
1967–68	…	12.3	6.3
1968–69	…	11.8	6.1
1969–70	…	11.1	5.8
^* For the years 1964–65 to 1968–69, the proportions are based on expenditure recorded in the Treasury analysis of public expenditure in the 1969 Blue Book on National Income and Expenditure. For the year 1969–70, the proportion is based on estimates provided in the Financial Statement and Budget Report 1969–70.
† Proportions are based on the latest valuation of Gross National Product. In the case of 1969–70 the Defence Budget estimate has been used as a basis for the calculation.