§ Mr. Stuart Hollandasked the Chancellor of the Exchequer what has been the share of public spending (a) including transfer payments and (b) excluding transfer payments in the United Kingdom economy in the years 1976 to 1985.
§ Mr. MacGregorThe figures are summarised in the following table:
General government expenditure as a percentage of GDP General government expenditure on goods and services as a percentage of GDP 1976–77 46 25½ 1977–78 42 23½ 1978–79 43 22½ 1979–80 43½ 22½ 1980–81 46 24 1981–82 46½ 23½ 1982–83 46½ 23½ 1983–84 46 23½ 1984–85 45½ 23½ 1985–86* 44½ 23 * Estimated outturn.
General government expenditure covers spending by central and local government; it includes transfer payments such as social security benefits. As a percentage of GDP, it shows the extent to which the nation's resources are flowing through government. General government expenditure on goods and services is a narrower measure and excludes transfer payments; as a percentage of GDP it shows the extent to which the nation's resources are being directly absorbed by government.