General Government Financial Deficits (Hansard, 19 July 1995)

§ Mr. Malcolm Bruce
To ask the Chancellor of the Exchequer if he will list for each Budget since 1965, and for the first fiscal year for which each Budget is designed(a) the implied or actual Budget forecast for the general government financial deficit as a proportion 1266W of gross domestic product and (b) the net fiscal effect of all Budget tax measures on the economy, expressed as a positive or negative percentage of gross domestic product. [35375]

§ Mr. Kenneth Clarke
The following table sets out the information requested, where available. Forecasts for the general government financial deficit were not published before the 1970 Budget. The net fiscal effect of Budget tax changes was not calculated on the present indexed basis prior to the 1982 Budget.

Budget forecasts of general government financial deficit and the net fiscal effect of Budget tax measures on the economy expressed as a per cent, of gross domestic product

Percentage of GDP¹

Date of Budget Forecast for year GGFD Net fiscal effect of Budget tax measures²

April 1970 1970–71 3.4 —

March 1971 1971–72 1.0 —

March 1972 1972–73 1.7 —

March 1973 1973–74 2.6 —

March 1974 1974–75 0.0 —

November 1974 1974–75 3.8 —

April 1975 1975–76 5.1 —

April 1976 1976–77 5.8 —

March 1977 1977–78 3.6 —

April 1978 1978–79 3.7 —

June 1979 1979–80 2.9 —

March 1980 1980–81 2.4 —

March 1981 1981–82 1.5 —

March 1982 1982–83 1.6 -0.6

March 1983 1983–84 2.6 -0.5

March 1984 1984–85 2.6 0.0

March 1985 1985–86 2.8 -0.2

March 1986 1986–87 3.4 0.3

March 1987 1987–88 2.4 -0.6

March 1988 1988–89 0.5 -0.8

March 1989 1989–90 -1.1 -0.4

March 1990 1990–91 -0.2 0.1

March 1991 1991–92 2.0 0.1

March 1992 1992–93 5.2 -0.4

March 1993 1993–94 8.7 0.1

November 1993 1994–95 6.3 0.2

November 1994 1995–96 3.7 -0.2

¹ GDP figures: CSO outturns up to 1994–95 and HMT forecast for 1995–96.

² The net effect of tax changes from an indexed basis. [Yield(+)/cost(-)].

§ Mr. Jim Cunningham
To ask the Chancellor of the Exchequer if he will make a statement on budget deficit measures used by the United Kingdom's European partners. [34198]

§ Mr.Waldegrave
[holding answer 18 July 1995]: The United Kingdom's European partners use a variety of budget deficit measures. Most are calculated on a cash basis. A common standardised measure of general government financial deficit is used in the excessive deficits procedure as set out in article 104c and the associated protocol of the treaty on European Union as amended as Maastricht.
1267W

Budget forecasts of general government financial deficit and the net fiscal effect of Budget tax measures on the economy expressed as a per cent, of gross domestic product
Percentage of GDP¹
Date of Budget	Forecast for year	GGFD	Net fiscal effect of Budget tax measures²
April 1970	1970–71	3.4	—
March 1971	1971–72	1.0	—
March 1972	1972–73	1.7	—
March 1973	1973–74	2.6	—
March 1974	1974–75	0.0	—
November 1974	1974–75	3.8	—
April 1975	1975–76	5.1	—
April 1976	1976–77	5.8	—
March 1977	1977–78	3.6	—
April 1978	1978–79	3.7	—
June 1979	1979–80	2.9	—
March 1980	1980–81	2.4	—
March 1981	1981–82	1.5	—
March 1982	1982–83	1.6	-0.6
March 1983	1983–84	2.6	-0.5
March 1984	1984–85	2.6	0.0
March 1985	1985–86	2.8	-0.2
March 1986	1986–87	3.4	0.3
March 1987	1987–88	2.4	-0.6
March 1988	1988–89	0.5	-0.8
March 1989	1989–90	-1.1	-0.4
March 1990	1990–91	-0.2	0.1
March 1991	1991–92	2.0	0.1
March 1992	1992–93	5.2	-0.4
March 1993	1993–94	8.7	0.1
November 1993	1994–95	6.3	0.2
November 1994	1995–96	3.7	-0.2
¹ GDP figures: CSO outturns up to 1994–95 and HMT forecast for 1995–96.
² The net effect of tax changes from an indexed basis. [Yield(+)/cost(-)].