Mr Major’s Written Parliamentary Answer on Expenditure – 8 December 1988

Below is the text of Mr Major’s written Parliamentary Answer on Expenditure on 8th December 1988.

Mr. John Ward To ask the Chancellor of the Exchequer what is the proportion of gross domestic product represented by general Government expenditure; and what was the comparable figure in 1982-83.

Mr. Major The Autumn Statement gave a forecast of 39.75 per cent. for the ratio of general Government expenditure (excluding privatisation proceeds) to gross domestic product in 1988-89. The corresponding figure for 1982-83 was 46.75 per cent.

Mr. Hayward To ask the Chancellor of the Exchequer if he will make a further statement on the outlook for public expenditure in 1989-90.

Mr. Major As my right hon. Friend the Chancellor of the Exchequer told the House in his Autumn Statement on 1 November, the public expenditure planning total for 1989-90 will remain at £167.1 billion, the level published in the last public expenditure White Paper. Further details of the public expenditure plans will be given in the 1989 public expenditure White Paper, to be published in the new year.

Dr. Bray To ask the Chancellor of the Exchequer by what percentage the level of the price index or gross domestic product deflator for 1989-90 assumed in the autumn statement 1988 in table 1.1 on trends in public expenditure exceeds that assumed for 1989-90 in the autumn statement for 1987 in table 2.2.

Mr. Major In the 1988 Autumn Statement the GDP deflator is assumed to rise by 5 per cent. in 1989-90. This is 1.5 per cent. higher than the corresponding figure assumed in 1987.