Mr Major’s Written Parliamentary Answer on Public Expenditure – 10 March 1988

Below is the text of Mr Major’s written Parliamentary Answer on Public Expenditure on 10th March 1988.

Mr. Watts To ask the Chancellor of the Exchequer how much general Government expenditure as a percentage of gross domestic product has fallen since 1982–83.

Mr. Soames To ask the Chancellor of the Exchequer how much general Government expenditure as a percentage of gross domestic product has fallen since 1982–83.

Mr. Major The 1988 public expenditure White Paper (Cm. 288) showed that general Government expenditure (excluding privatisation proceeds) as a percentage of gross domestic product has fallen from 46.25 per cent. in 1982–83 to 42.5 per cent. in 1987–88.

Mr. Beith To ask the Chancellor of the Exchequer what is the objective of his policy of reducing public expenditure annually as a proportion of gross domestic product.

Mr. Major Our policy of reducing public spending as a proportion of GDP over the medium term, which does not imply particular targets for individual years, will enable a low level of borrowing to be combined with reductions in the burden of taxation, thus encouraging enterprise and efficiency and the growth of output and employment.