§ Mr. KhabraTo ask the Chancellor of the Exchequer what percentage of national income is currently taken in taxation; and what was the figure in 1979. [33361]
§ Mr. WaldegraveThe Budget estimate of total taxes and national insurance contributions as a percentage of gross domestic product, GDP, in 1995–96 was 36 per cent. In 1979–80, the comparable figure was 35½ per cent. An outturn estimate for 1995–96 is not yet available.
Since 1979, public sector borrowing has averaged 2½ per cent. of GDP. Under the last Labour Government, public sector borrowing averaged nearly 7 per cent. of GDP. If Labour had kept borrowing down to the same level that this Government have achieved, taxes would have been higher under Labour by an average of nearly 3 per cent. of GDP.