HC Deb 22 October 1973 vol 861 cc372-3W
Miss Quennell

asked the Chancellor of the Exchequer if he will publish a table showing central Government expenditure as a percentage of the gross domestic product for the past 10 years.

Mr. Nott

Percentages based on three definitions of central Government expenditure are tabulated below:

(1) (2) (3)
1963 13.4 27.6 33.2
1954 13.2 26.8 33.5
1965 13.4 27.6 35.5
1966 13.5 27.8 36.7
1967 14.1 30.1 39.9
1968 14.0 31.5 41.6
1969 13.7 31.2 40.8
1970 14.0 31.0 40.9
1971 14.1 30.7 41.0
1972 14.1 31.6 41.9

In all three cases the percentages are of gross domestic product at factor cost, and are based on figures from National Income and Expenditure 1973.

Column (1): Represents that part of central Government expenditure which directly contributes to GDP (central Government consumption and investment).

Column (2): Column (1) plus transfer payments and loans to the private sector and overseas. The transfer payments include grants, subsidies and payments of debt interest. This definition can be regarded as the central Government's contribution to total public expenditure (including transfer payments and loans).

Column (3): Column (2) plus transfer payments and loans from central Government to other parts of the public sector (local authorities and public corporations). This definition represents the total current and capital expenditure of the central Government.

The transfer payments and loans included in Columns (2) and (3) do not represent the direct pre-emption of resources by the central Government and therefore do not contribute directly to GDP. They imply final expenditure by the private sector, and are only included as such in GDP.