HC Deb 05 May 1978 vol 949 cc317-8W
Mr. Lawson

asked the Chancellor of the Exchequer, further to the Written Answer to the hon. Member for Louth (Mr. Brotherton) Official Report, 5th April, column 145, if he will give his best estimate of the likely general Government financial deficit in 1978 expressed as a percentage of the gross domestic product at market prices; and how this percentage compares with comparable forecasts for other major Organisation For Economic Co-operation and Development member countries for 1978 and with the respective outturns for 1977.

Mr. Denzil Davies

, pursuant to the reply [Official Report, 4th May 1978; Vol. 949, c. 251], gave the following information:

The Budget forecast of the general Government financial deficit in 1978–79 is some 4 per cent. of GDP at market prices compared with 31 per cent. in 1977–78. Comparable figures for other major OECD countries are shown below.

GENERAL GOVERNMENT FINANCIAL DEFICIT 1977 AND 1978: RATIO TO GROSS DOMESTIC PRODUCT*
Per cent
GDP at market prices
1977 1978
Canada 2
France 1
Germany 3 4
Italy
Japan† 5
USA 1 1
United Kingdom† 4
* OECD forecasts (Economic Outlook, No. 22) except for United Kingdom. Out-turn estimates are not yet available for other countries.
† Financial years.

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