HC Deb 20 June 1979 vol 968 cc588-9W
Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer what is his latest estimate of public expenditure, as defined before Cmnd. 6721, as a percentage of gross domestic product at factor cost in the financial years 1957–58, 1970–71, 1973–74, 1976–77, 1977–78 and 1978–79; and what is his forecast of the corresponding percentage for the financial year 1979–80 following the Budget changes.

Mr. Biffen

, pursuant to his reply [Official Report, 18 June 1979], gave the following answer:

The definition of public expenditure in use till late in 1976 was broader than that now in use Moreover, in expressing public expenditure as a ratio to gross domestic product the latter is now normally measured at market prices rather than at factor cost for consistency with the measurement of public expenditure Estimates to 1978–79 on the old basis requested are provided in the following table. The ratio is not expected to change much in 1979–80: the exclusion of indirect tax from the denominator tends to raise it.

PUBLIC EXPENDITURE AS DEFINED IN CMND. 6393 OF FEBRUARY 1976
As a percentage of gross domestic product at factor cost
1957–58 41
1970–71 51½
1973–74 52½
1976–77 57½
1977–78 53½
1978–79 (estimated) 54½