§ Mr. Trotterasked the Chancellor of the Exchequer what percentage of the gross national product was devoted to public spending by central and local government in each of the last 20 years; and so far as the information is available, how the current percentage compares with other countries.
§ Mr. Joel BarnettThe following table shows the central Government and local authority contribution to public expenditure expressed as a percentage of GNP in the years 1954 to 1973. The first column refers to total expenditure including transfers, the second to final expenditure on goods and services only.
TABLE A PERCENTAGE OF GNP AT FACTOR COST: CURRENT PRICES Central and local government element of public expendicture Central and local government expenditure on goods and services* 1954 37.6 23.9 1955 36.9 22.8 1956 36.5 23.1 1957 35.7 22.6 1958 36.0 22.1 1959 36.4 22.4 1960 37.0 22.2 1961 37.7 22.5 1962 38.7 23.2 1963 38.8 23.1 1964 38.8 23.4 1965 40.2 23.9 1966 40.9 24.8 1967 44.3 26.3 1968 45.8 26.4 1969 45.7 26.1 1970 45.8 26.6 1971 45.2 26.5 1972 46.2 26.7 1973 46.6 26.6 * Current expenditure on goods and services plus gross capital formation. Because of differences in national accounting practice the only valid international comparison is in terms of final expenditure. The following figures, which relate to 1972, the latest year for which information is available for a range 125W of countries, are based on the United Nations System of National Accounts, which differs in some respects from the usual United Kingdom presentation.
TABLE B Central and local government expenditure on goods and services in 1972, expressed as a percentage of GNP at factor cost France 17.7 Italy 19.1 Netherlands 23.4 Sweden 33.3 United Kingdom 26.1 United States 26.6 West Germany 24.4