§ Mr. MitchellTo ask the Chancellor of the Exchequer if he will state the amount allocated in each budget of the European Community for information relating to implementation of EMU; on what occasions such expenditure was authorised by the Economic and Finance Council; and what(a) observations and (b) votes were made by Ministers on each occasion. [12965]
§ Mrs. Liddell[holding answer 27 October 1997]: Funding for information relating to the implementation of EMU has been made available since 1996 under the European Commission's information programme for European citizens (Prince). The relevant budget line is B3306.
The EC Budget does not break down the overall level of Prince by individual programme. I would suggest that the hon. Member approaches the European Commission directly for this information.
The Budget Council have so far considered the budget allocation for Prince on four occasions—during their second reading of the 1996 budget on 17 November 1995, their first and second readings of the 1997 budget on 25 July 1996 and 19 November 1996, and their first reading of the 1998 budget on 24 July 1997.
On each occasion the Budget Council, supported by the UK, have reduced the budget allocation for Prince. However, since this spending is not obligatory under the treaty it has been the European Parliament that has in each case set the final level in the budget.
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§ Mr. MitchellTo ask the Chancellor of the Exchequer to what extent Government investment in(a) additional building for maintained schools, (b) the national health service, (c) London Underground and (d) new roads counts within the totals of Government revenue, expenditure and borrowing used for the European monetary union convergence criteria.[12944]
§ Mr. Darling[holding answer 27 October 1997]: All current and capital expenditure by central and local government contributes to the general government financial deficit (GGFD), the Maastricht measure of the budget deficit. This includes all government grants to maintained schools and London Underground, and all Government spending on the national health service and new roads.
Government lending and government transactions in shares are not included in the GGFD. For example, government lending to London Underground, NHS trust hospitals and students does not increase GGFD. However, the government has to finance such lending through higher taxes or increased borrowing. Increased borrowing would add to general government gross debt—the Maastricht measure of Government debt.
Similarly, receipts from repayments of government lending, and from privatisation proceeds, do not reduce the GGFD but would reduce gross debt.