Public Expenditure (Hansard, 15 February 1977)

§ Mr. Clemitson
asked the Chancellor of the Exchequer what proportion of the gross domestic product public expenditure constituted in the last complete financial year; and what are the corresponding figures, using a comparable basis of calculation, for each of the other member countries of the EEC and the member countries of the EFTA.

§ Mr. Denzil Davies
Total public expenditure, as defined in Table 1 of Cmnd. 6721-I, in 1975–76 was 46.2 per cent. of the gross domestic product at market prices. Corresponding figures on the same basis for other countries are not available. Estimates of general Government expenditure as a proportion of GDP at market prices, based on the national accounts of OECD countries, are given below. A reconciliation between public expenditure as defined in Cmnd. 6721-I and general Government expenditure on the OECD basis was given in the reply to the hon. Member for Cirencester and Tewkesbury (Mr. Ridley) on 9th February.
213W

§ Mr. Ridley
asked the Chancellor of the Exchequer if he will give his reasons for the decision for making one and two year public expenditure surveys, contained in paragraph 4 of Command Paper No. 6271, Part I, in the light of the five-year forecast recommended by the Plowden Committee on Public Spending.

§ 1973. Mr. Joel Barnett
Paragraph 4 of Cmnd. 6721-I refers to the Memorandum to the Expenditure Committee published in the Thirteenth Report of the Expenditure Committee. This says that the Government mean to continue annual surveys projecting expenditure over a five-year period.

GENERAL GOVERNMENT EXPENDITURE AS A PROPORTION OF GDP (MARKET PRICES) IN 1974

Per cent.

EEC countries:

Belgium … … 39.6

Denmark … … 44.1

France … … 38.0

West Germany … … 41.5

Ireland … … 39.9^†

Italy … … 40.2^†

Luxembourg … … 39.9

Netherlands … … 50.1

United Kingdom … … 44.8^§

EFTA countries:

Austria … … 36.6^†

Finland … … 34.7

Iceland … … 29.6^*

Norway … … 45.8

Portugal … … 24.9

Sweden … … 49.2

Switzerland … … 27.5^‡

Source: National Accounts of OECD countries
^*
^†
^‡ Current expenditure only.
^§ 46.1 per cent. in 1975.

GENERAL GOVERNMENT EXPENDITURE AS A PROPORTION OF GDP (MARKET PRICES) IN 1974
			Per cent.
EEC countries:
Belgium	…	…	39.6
Denmark	…	…	44.1
France	…	…	38.0
West Germany	…	…	41.5
Ireland	…	…	39.9^†
Italy	…	…	40.2^†
Luxembourg	…	…	39.9
Netherlands	…	…	50.1
United Kingdom	…	…	44.8^§
EFTA countries:
Austria	…	…	36.6^†
Finland	…	…	34.7
Iceland	…	…	29.6^*
Norway	…	…	45.8
Portugal	…	…	24.9
Sweden	…	…	49.2
Switzerland	…	…	27.5^‡