PUBLIC EXPENDITURE ANNUAL OUTTURNS

Updates for 2002-03 and earlier years for key series.

This release provides new estimates of financial year outturns for some key public expenditure series that are complied and published by H M Treasury as National Statistics.

New estimates are being released for three series:

Table1 - Total Managed Expenditure, by budgetary category (Spending Review 2000 budgeting basis).
Table 2 – Departmental Expenditure Limits, resource and capital, by departmental group (SR2000 budgeting).
Table 3 – Total Managed Expenditure, by broad function.

The data included in this release update provisional outturns for 2002-03 published in July (ref: Pn 89/03). There are also some revisions to outturns for earlier years. Public expenditure outturns shown in the End Year Fiscal Report published today are consistent with the data in this release.

Public Expenditure by budgetary category

Data in Tables 1 and 2 updates earlier estimates published in July (ref: Pn 89/03).

Total Managed Expenditure (TME) for 2002-03 is now estimated at £419.1 billion, slightly lower than the July estimate of £419.9 billion.

Total Departmental Expenditure Limits (SR2000 budgeting basis) spending is now estimated at £233.3 billion, slightly higher than the estimate of £233.0 billion in July. Resource DEL, at £205.2 billion, is £0.1 billion higher, and Capital DEL, at £28.0 billion, is £0.1 billion lower than July.

Total Managed Expenditure – Comparison with July

£ billion

	Resource DEL	Capital DEL	AME	TME
December 2003	205.2	28.0	185.7	419.1
July 2003	205.1	28.1	186.7	419.9

Public Expenditure by function

Data for spending by function (Table 3) was last released in July (ref: Pn 89/03). These have now been updated, in line with the revised budgetary outturns in Tables 1 and 2.

Table 3 shows total public spending by function, including spending the devolved administrations, local authorities and capital spending of public corporations. At this stage estimates for local authority spending are still very provisional. There have been some updates to estimates with outturn since July but the local authority components of public spending for each function are still largely based on local authority budget information.

Table 1 Total Managed Expenditure, 1998-99 to 2002-03 (RAB stage 1 basis)
					£million
	1998-99	1999-00	2000-01	2001-02	2002-03
	outturn	outturn	outturn	outturn	outturn
Departmental Expenditure Limits
Resource Budget	153,569	159,954	172,793	187,573	205,239
Capital Budget	17,537	18,780	20,200	24,062	28,048
Total Departmental Expenditure Limits	171,106	178,734	192,994	211,635	233,287
Annually Managed Expenditure
Social security benefits ⁽¹⁾	91,975	96,988	99,131	105,054	109,714
Housing Revenue Account subsidies	3,486	3,285	3,096	4,527	4,270
Common Agricultural Policy	2,986	2,740	2,895	3,611	2,680
Export Credits Guarantee Department	-154	925	1,315	349	98
Self-financing Public Corporations	709	1,387	1,374	1,001	1,139
Net public service pensions	4,912	5,140	4,975	4,983	4,058
National Lottery	1,831	1,908	1,855	1,710	1,810
Other programme spending	45	1,080	1,879	4,222	1,854
Non-cash items:
Depreciation	7,345	7,372	9,240	9,523	15,280
Cost of capital charges	9,228	9,629	10,625	10,598	8,872
Provisions and other charges	1,012	2,821	5,077	1,907	6,541
Total departmental AME	124,003	133,275	141,462	147,484	156,314

Other AME:
Net payments to EC institutions ⁽²⁾	3,590	2,807	3,734	841	2,274
Locally financed expenditure	17,464	18,503	18,420	20,363	19,680
Central Government gross debt interest	28,760	24,927	25,945	22,051	20,867
Total Other AME	49,814	46,236	48,100	43,255	42,821

Accounting Adjustments	-11,489	-14,614	-15,500	-11,643	-13,358
Total Annually Managed Expenditure	161,701	164,898	174,062	179,096	185,777
Total Managed Expenditure	332,689	343,632	367,056	390,731	419,064

of which:
Current Investment	314,667	326,608	348,850	367,399	393,991
Net Investment	6,015	4,148	4,994	9,549	10,721
Depreciation	12,615	12,876	13,212	13,783	14,352
⁽¹⁾ Social security benefits include bad debts ⁽²⁾ Net payments to EC institutions exclude the UK's contributions to the cost of EC aid to non-Member states (which is attributed to the aid programme). Net payments therefore differ from the UK's net contributions to the EC Budget, latest estimates for which are: £3,325 million in 1999-00, £4,318 million in 2000-01, £1,477 million in 2001-02 and £3,080 million in 2002-03.

Table 2 Departmental Expenditure Limits- Current and Capital Budgets, 1998-99 to 2002-03 (RAB stage 1 basis)
					£ million
	1998-99	1999-00	2000-01	2001-02	2002-03
	outturn	outturn	outturn	outturn	outturn
Resource Budget
Education and Skills	11,698	12,303	14,430	16,708	20,437
Health	38,216	39,832	43,249	48,193	53,618
of which: NHS	37,523	39,293	42,686	47,358	51,934
Transport	2,590	2,702	2,831	2,686	3,146
Office of the Deputy Prime Minister	569	625	740	1,328	1,760
Local Government	32,375	33,922	35,270	36,922	37,396
Home Office	6,805	7,054	8,411	9,677	10,392
Lord Chancellor's departments	2,655	2,054	2,645	2,836	3,013
Attorney General's departments	333	331	361	403	485
Defence	17,729	18,152	19,239	18,521	20,249
Foreign and Commonwealth Office	953	1,025	1,178	1,263	1,345
International Development	2,012	2,528	2,732	3,131	3,369
Trade and Industry	2,746	2,855	3,039	3,571	3,566
Environment, Food and Rural Affairs	1,510	1,717	1,815	2,731	2,171
Culture, Media and Sport	853	925	960	885	1,089
Work and Pensions	5,338	5,264	5,438	6,394	7,195
Scotland	11,675	12,100	12,805	13,740	15,699
Wales	6,028	6,297	6,801	7,501	8,496
Northern Ireland Executive	4,046	4,282	4,542	4,876	5,387
Northern Ireland Office	964	962	1,039	1,086	1,072
Chancellor's departments	3,160	3,318	3,513	3,851	3,988
Cabinet Office	984	1,214	1,121	1,272	1,363
Welfare to Work⁽¹⁾	269	493	635	0	0
Total Resource DEL	153,508	159,954	172,793	187,573	205,239

Capital Budget
Education and Skills	901	1,106	1,592	2,645	3,413
Health	746	957	1,300	1,826	2,179
of which: NHS	700	908	1,246	1,732	2,106
Transport	1,978	2,474	2,151	4,316	5,663
Office of the Deputy Prime Minister	3,171	3,146	3,797	2,646	3,174
Local Government	360	272	56	85	202
Home Office	473	458	481	802	1,036
Lord Chancellor's departments	96	57	64	111	109
Attorney General's departments	5	4	14	23	8
Defence	5,989	5,976	5,740	5,918	6,211
Foreign and Commonwealth Office	101	102	130	77	75
International Development	-22	25	-16	24	-11
Trade and Industry	247	191	345	627	833
Environment, Food and Rural Affairs	227	343	344	448	505
Culture, Media and Sport	115	76	56	70	53
Work and Pensions	-286	63	63	174	230
Scotland	1,370	1,701	1,813	2,164	2,139
Wales	783	632	775	933	996
Northern Ireland Executive	591	564	652	706	671
Northern Ireland Office	23	26	36	44	60
Chancellor's departments	108	141	-146	210	285
Cabinet Office	231	203	210	213	216
Welfare to Work ⁽¹⁾	271	264	742
Total Capital DEL	17,480	18,780	20,200	24,062	28,048
Total Budget DEL	171,106	178,734	192,994	211,635	233,287
⁽¹⁾ Spending financed by Windfall Tax

TABLE 3 Total Managed Expenditure by function 1998-99 to 2002-03
		cash, £ Billion			resources, £ Billion
	1998-99	1999-00	2000-01	2001-02	2002-03
	outturn	outturn	outturn	outturn	estimated
					outturn
Education	39.0	40.9	44.2	49.3	53.3
Health and PSS ⁽¹⁾	57.3	62.3	66.8	73.0	81.6
of which: Health	46.4	50.2	53.9	59.1	65.9
Transport	8.7	8.6	9.1	11.5	13.2
Housing	3.7	2.9	3.2	4.7	4.8
Environment	8.5	9.5	10.6	11.5	12.8
Law, order and protection	17.5	18.8	20.5	22.9	24.8
Defence	22.6	22.7	24.9	24.1	24.9
International	3.2	3.4	4.1	5.1	6.5
Trade, employment etc	9.1	9.5	10.6	11.4	12.3
Agriculture	4.8	4.6	5.2	6.8	5.4
Culture, Media and Sport ⁽²⁾	5.0	5.0	5.2	5.4	5.8
Social protection ⁽³⁾	99.4	104.1	109.1	116.5	122.6
Central Administration etc ⁽⁴⁾	10.2	10.2	11.7	10.1	12.5
Total expenditure on services ⁽⁵⁾	288.9	302.4	325.1	352.2	380.6
Public sector debt interest	29.4	25.3	26.4	22.5	21.3
Other accounting adjustments ⁽⁶⁾	14.4	15.9	15.5	16.1	17.2
Allowance for shortfall	0.0	0.0	0.0	0.0	0.0
Total Managed Expenditure	332.7	343.6	367.1	390.7	419.1
1. Excludes trust debt renumeration 2. Includes expenditure financed from the National Lottery 3. Includes tax credit payments in excess of an individual’s tax liability 4. Includes net payments to the European Communities and activities such as tax services and the registration of the population 5. The definition of expenditure on services is set out in Appendix F of Public Expenditure Statistical Analyses 2002-03 6. Includes net public service pensions

Notes to Editors

Background

Budgetary data (Tables 1 and 2)

1. These data are being released in accordance with the National Statistics Code of Practice, and with the Treasury’s statement of compliance with the Code’s protocol on release practices, available on the Treasury website.

2. Presentation of public expenditure in Tables 1 and 2 follows the Treasury’s budgeting and control framework, which splits spending into Departmental Expenditure Limits (DEL) and Annually Managed Expenditure (AME). DELs are firm three year spending limits set for departments; there are separate DELs for resource and capital spending. Spending that cannot reasonably be subject to firm multi-year limits is included in AME. DEL and AME together make up Total Managed Expenditure (TME), an aggregate that is drawn from the national accounts and is defined in national accounts terms as public sector current expenditure plus net investment plus depreciation.

3. The DEL/AME budgeting framework was introduced in 1998 for the Comprehensive Spending Review, which set spending plans for 1999-2000 to 2001-02. The 2000 Spending Review (SR2000) saw the introduction of resource budgeting, with a transitional resource budgeting regime under which certain non-cash items were in AME rather than in DEL. Planning and control of public spending for 2001-02 and 2002-03 has been under the SR2000 budgeting rules. The presentation of public expenditure in Tables 1 and 2 follows SR2000 budgeting.

4. Full resource budgeting was introduced for the 2002 Spending Review, and will operate for planning and control of spending from 2003-04. Spending plans in the 2003 Budget are on the basis of SR2002 budgeting. Estimates of outturn on this basis have been published in Public Expenditure Statistical Analyses 2003.

Spending by Function (Table 3)

5. Data on public spending by function is published annually in Public Expenditure Statistical Analyses. The spending aggregate allocated by function is expenditure on services, which covers most expenditure by the public sector included in TME. It excludes debt interest payments, public services pension payments and some accounting adjustments. Expenditure on services is broken down into 12 broad functions. All data is UK, with spending by devolved administrations being allocated by function as appropriate.

Methodology and definitions

6. Treasury statistics on public expenditure are compiled from accounting data that is supplied by central government departments and the devolved administrations, and held on the Treasury’s public expenditure (PES) database. Data on local authority spending is supplied by the Office of the Deputy Prime Minister (for England) and by the devolved administrations.

A National Statistics publication

7. Most public expenditure outturn data published by H M Treasury are published as National Statistics. National Statistics is the official source for authoritative, accurate and relevant information on the economy and society. It brings together a vast range of statistical information overseen by the National Statistician. The National Statistics logo is your assurance of statistics produced to the highest professional standards. For more information about National Statistics visit their website. The release of data in this press notice has followed the National Statistics Code of Practice and Protocol of Release Practices.

Internet version

8. If you have access to the Internet, you can find this news release and other Treasury information on our site.

Enquiries

9. Media enquiries about this press release should be addressed to the Treasury Press Office on 020 7270 5238.

10. Public enquiries (non-media) about this press release should be addressed to the Treasury’s Public Enquiry Unit on:

Telephone: 020 7270 4558
Fax: 020 7270 4574
Email public.enquiries@hm-treasury.gov.uk

11. National Statistics Public Enquiry Service

For general enquiries about National Statistics, contact the National Statistics Public Enquiry Service on

Telephone: 020 7533 5888
minicom: 01633 812399
E-mail info@statistics.gov.uk
Fax: 01633 652747
Letters:
Room DG/18, 1 Drummond Gate, LONDON. SW1V 2QQ

You can also find National Statistics on the National Statistics website.

Public Finance and Spending Statistics index

Press notices July to December 2003 index