Annex B: The Public Finances (Part Three)

B67.  The forecast for the central government net cash requirement for 2001-02 has now been revised by £6 billion to £6.3 billion. As a result of the revised forecast, the Debt Management Office's target for buy-backs from the secondary market has been scaled back to £0.5 billion. Additionally, it is now expected that National Savings' net contribution will be some £3 billion higher than originally planned. This means that the revised net financing requirement for 2001-02 is now £25.6 billion, an increase of £2.5 billion from the forecast published with the outturn data for 2000-01 on 23 April 2001.

B68.  In order to meet this increased financing requirement, the Debt Management Office's gilt remit for 2001-02 has been revised and they are now instructed to:

  • increase gross gilts issuance by £0.5 billion to £14 billion;
  • increase the planned stock of outstanding Treasury bills by £1.4 billion to
    £9.7 billion; and
  • increase the planned rundown of their net cash position by a further
    £0.6 billion to £5.2 billion.

B69.  Full details of all these measures and a complete financing table for 2001-02 can be found on the Debt Management Office's website (www.dmo.gov.uk).

Table B21: Public sector transactions by sub-sector and economic category

£ billion
2000-01
General government
Central Local Public Public
Line government authorities Total corporations sector
Current Receipts
Taxes on income and wealth 1 143.8 0.0 143.8 -0.1 143.7
Taxes on production and imports 2 131.6 0.2 131.8 0.0 131.8
Other current taxes 3 3.3 14.0 17.3 0.0 17.3
Taxes on capital 4 2.2 0.0 2.2 0.0 2.2
Social contributions 5 62.2 0.0 62.2 0.0 62.2
Gross operating surplus 6 4.3 3.4 7.7 9.1 16.8
Rent and other current transfers 7 1.7 0.0 1.7 0.6 2.4
Interest and dividends from private sector and abroad 8 4.8 0.8 5.6 0.2 5.8
Interest and dividends from public sector 9 5.4 1.4 6.7 -6.7 0.0
Total current receipts 10 359.3 19.8 379.2 3.1 382.2
Current Expenditure
Current expenditure on goods and services 11 107.2 70.1 177.3 0.0 177.3
Subsidies 12 4.3 1.0 5.3 0.0 5.3
Net social benefits 13 102.8 11.9 114.8 0.0 114.8
Net current grants abroad 14 -0.1 0.0 -0.1 0.0 -0.1
Current grants (net) within public sector 15 67.4 -67.4 0.0 0.0 0.0
Other current grants 16 20.6 0.0 20.6 0.0 20.6
Interest and dividends paid 17 26.1 0.4 26.5 0.1 26.6
Apportionment of AME margin 18 0.0 0.0 0.0 0.0 0.0
Total current expenditure 19 328.3 16.1 344.3 0.1 344.5
Depreciation 20 4.3 3.4 7.7 5.0 12.7
Surplus on current budget 21 26.8 0.3 27.1 -2.0 25.1
Capital expenditure
Gross domestic fixed capital formation 22 4.5 7.0 11.5 4.6 16.1
Less depreciation 23 -4.3 -3.4 -7.7 -5.0 -12.7
Increase in inventories 24 -0.1 0.0 -0.1 -0.1 -0.2
Capital grants (net) within public sector 25 5.0 -4.3 0.7 -0.7 0.0
Capital grants to private sector 26 2.6 1.2 3.8 0.0 3.8
Capital grants from private sector 27 0.0 -0.7 -0.7 0.0 -0.8
Net capital expenditure 28 7.8 -0.3 7.5 -1.2 6.3
Net borrowing 29 -19.0 -0.6 -19.6 0.8 -18.8

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Table B21: Public sector transactions by sub-sector and economic category

£ billion
2001-02
General government
Central Local Public Public
Line government authorities Total corporations sector
Current Receipts
1 145.8 0 145.8 -0.1 145.7 Taxes on income and wealth
2 136.4 0.2 136.6 0.0 136.6 Taxes on production and imports
3 3.3 14.8 18.1 0.0 18.1 Other current taxes
4 2.4 0.0 2.4 0.0 2.4 Taxes on capital
5 63.8 0.0 63.8 0.0 63.8 Social contributions
6 4.5 3.5 8.0 9.6 17.7 Gross operating surplus
7 1.9 0.0 1.9 0.7 2.6 Rent and other current transfers
8 3.4 0.7 4.1 0.2 4.3 Interest and dividends from private sector and abroad
9 5.7 1.8 7.5 -7.5 0.0 Interest and dividends from public sector
10 367.4 21.0 388.3 2.8 391.1 Total current receipts
Current expenditure
11 117.8 74.9 192.7 0.0 192.7 Current expenditure on goods and services
12 6.5 1.0 7.5 0.0 7.5 Subsidies
13 110.1 12.4 122.4 0.0 122.4 Net social benefits
14 -2.0 0.0 -2.0 0.0 -2.0 Net current grants abroad
15 71.9 -71.9 0.0 0.0 0.0 Current grants (net) within public sector
16 24.2 0.0 24.2 0.0 24.2 Other current grants
17 22.2 0.2 22.4 0.1 22.5 Interest and dividends paid
18 0.2 0.0 0.2 0.0 0.2 Apportionment of AME margin
19 350.8 16.7 367.5 0.1 367.6 Total current expenditure
20 4.5 3.5 8.0 5.2 13.2 Depreciation
21 12.0 0.8 12.8 -2.4 10.3 Surplus on current budget
Capital expenditure
22 6.6 8.6 15.2 4.8 20.1 Gross domestic fixed capital formation
23 -4.5 -3.5 -8.0 -5.2 -13.2 Less depreciation
24 0.2 0.0 0.2 0.0 0.2 Increase in inventories
25 5.7 -4.3 1.5 -1.5 0.0 Capital grants (net) within public sector
26 5.3 1.2 6.5 0.0 6.5 Capital grants to private sector
27 0.0 -0.7 -0.7 0.0 -0.7 Capital grants from private sector
28 13.3 1.4 14.7 -1.8 12.9 Net capital expenditure
29 1.3 0.6 1.9 0.6 2.5 Net borrowing

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Table B21: Public sector transactions by sub-sector and economic category

£ billion
2002-03
General government
Central Local Public Public
Line government authorities Total corporations sector
Current Receipts
Taxes on income and wealth 1 152.5 0.0 152.5 -0.2 152.3
Taxes on production and imports 2 142.2 0.2 142.3 0.0 142.3
Other current taxes 3 3.4 15.8 19.3 0.0 19.3
Taxes on capital 4 2.5 0.0 2.5 0.0 2.5
Social contributions 5 64.6 0.0 64.6 0.0 64.6
Gross operating surplus 6 4.8 3.7 8.5 10.1 18.6
Rent and other current transfers 7 1.9 0.0 1.9 0.7 2.6
Interest and dividends from private
sector and abroad 8 3.1 0.6 3.7 0.3 4.0
Interest and dividends from public sector 9 5.8 1.7 7.5 -7.5 0.0
Total current receipts 10 380.8 22.0 402.7 3.4 406.2
Current Expenditure
Current expenditure on goods and services 11 126.0 80.6 206.6 0.0 206.6
Subsidies 12 6.4 1.1 7.5 0.0 7.5
Net social benefits 13 114.0 12.7 126.7 0.0 126.7
Net current grants abroad 14 -0.9 0.0 -0.9 0.0 -0.9
Current grants (net) within public sector 15 77.0 -77.0 0.0 0.0 0.0
Other current grants 16 26.6 0.0 26.6 0.0 26.6
Interest and dividends paid 17 21.4 0.2 21.6 0.1 21.7
Apportionment of AME margin 18 1.2 0.0 1.2 0.0 1.2
Total current expenditure 19 371.8 17.5 389.3 0.1 389.4
Depreciation 20 4.8 3.7 8.5 5.5 14.0
Surplus on current budget 21 4.2 0.8 5.0 -2.2 2.8
Capital expenditure
Gross domestic fixed capital formation 22 8.2 10.2 18.4 4.6 23.0
Less depreciation 23 -4.8 -3.7 -8.5 -5.5 -14.0
Increase in inventories 24 0.2 0.0 0.2 0.0 0.2
Capital grants (net) within public sector 25 6.1 -5.3 0.8 -0.8 0.0
Capital grants to private sector 26 4.9 1.4 6.3 0.0 6.3
Capital grants from private sector 27 0.0 -0.7 -0.7 0.0 -0.7
Net capital expenditure 28 14.6 1.9 16.5 -1.7 14.8
Net borrowing 29 10.4 1.1 11.5 0.5 12.0


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Table B21: Public sector transactions by sub-sector and economic category

£ billion
2003-04
General government
Central Local   Public Public
Line government authorities Total corporations sector
Current Receipts
1 162.9 0.0 162.9 -0.2 162.7 Taxes on income and wealth
2 148.8 0.2 148.9 0.0 148.9 Taxes on production and imports
3 3.7 16.9 20.5 0.0 20.5 Other current taxes
4 2.6 0.0 2.6 0.0 2.6 Taxes on capital
5 68.0 0.0 68.0 0.0 68.0 Social contributions
6 5.0 3.9 8.9 10.6 19.5 Gross operating surplus
7 1.9 0.0 1.9 0.7 2.6 Rent and other current transfers
8 3.9 0.7 4.6 0.2 4.8 Interest and dividends from private sector and abroad
9 6.6 2.0 8.5 -8.5 0.0 Interest and dividends from public sector
10 403.2 23.6 426.7 2.8 429.6 Total current receipts
Current expenditure
11 131.7 85.8 217.5 0.0 217.5 Current expenditure on goods and services
12 6.4 1.1 7.6 0.0 7.6 Subsidies
13 120.0 13.1 133.1 0.0 133.1 Net social benefits
14 -1.0 0.0 -1.0 0.0 -1.0 Net current grants abroad
15 81.5 -81.5 0.0 0.0 0.0 Current grants (net) within public sector
16 28.9 0.0 28.9 0.0 28.9 Other current grants
17 23.2 0.2 23.3 0.1 23.5 Interest and dividends paid
18 1.5 0.0 1.5 0.0 1.5 Apportionment of AME margin
19 392.2 18.8 411.0 0.1 411.1 Total current expenditure
20 5.0 3.9 8.9 5.7 14.6 Depreciation
21 5.9 0.9 6.9 -3.0 3.9 Surplus on current budget
Capital expenditure
22 9.2 11.6 20.8 4.3 25.1
Gross domestic fixed capital formation
23 -5.0 -3.9 -8.9 -5.7 -14.6 Less depreciation
24 0.1 0.0 0.1 0.0 0.1 Increase in inventories
25 7.0 -6.3 0.7 -0.7 0.0 Capital grants (net) within public sector
26 7.1 1.5 8.6 0.0 8.6 Capital grants to private sector
27 0.0 -0.6 -0.6 0.0 -0.6 Capital grants from private sector
28 18.4 2.3 20.7 -2.1 18.6 Net capital expenditure
29 12.5 1.3 13.8 0.9 14.7 Net borrowing


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Table B22: Historical series of public sector balances, receipts and debt

Per cent of GDP
Cyclically
Public Public adjusted Public General Net taxes Public Public General Public
sector sector public sector government and social sector sector government sector
current net sector net net cash net security current net gross net
budget borrowing borrowing requirement borrowing1 contributions receipts debt2 debt3 worth4
1970-71 6.7 -0.6 -0.8 1.2 -2.1 43.1
1971-72 4.2 1.1 0.5 1.4 -0.7 41.2
1972-73 2.0 2.8 2.7 3.6 2.2 38.9
1973-74 0.3 4.9 5.8 5.9 4.4 39.4
1974-75 -1.1 6.6 7.3 9.0 4.1 42.1 52.1 60.4
1975-76 -1.6 7.0 6.6 9.3 4.8 42.7 53.9 58.7
1976-77 -1.2 5.5 4.9 6.4 4.1 43.1 52.4 59.1
1977-78 -1.4 4.3 3.9 3.7 3.6 41.3 49.0 57.1
1978-79 -2.6 5.0 4.9 5.2 4.3 33.2 40.0 47.1 56.2
1979-80 -1.9 4.1 4.1 4.7 3.0 33.9 40.6 43.9 51.8
1980-81 -3.0 4.9 2.9 5.2 3.8 35.7 42.4 46.1 52.9
1981-82 -1.4 2.3 -1.7 3.3 3.3 38.7 45.7 46.1 51.7
1982-83 -1.5 3.0 -1.2 3.2 3.1 39.0 45.5 44.8 50.4
1983-84 -2.0 3.8 0.4 3.2 3.8 38.2 44.4 45.3 50.4
1984-85 -2.2 3.7 0.8 3.1 3.3 38.9 44.4 45.2 50.3
1985-86 -1.2 2.4 0.6 1.6 2.6 38.1 43.1 43.4 49.5
1986-87 -1.4 2.1 1.6 0.9 2.3 37.8 42.0 41.1 48.9
1987-88 -0.3 1.0 1.8 -0.7 1.3 37.6 41.1 36.8 46.5 75.2
1988-89 1.7 -1.3 0.9 -3.0 -0.9 36.9 40.7 30.6 40.6 81.7
1989-90 1.4 -0.2 2.3 -1.3 0.3 36.2 39.9 27.7 35.5 73.6
1990-91 0.4 1.0 2.5 -0.1 1.4 36.3 39.0 26.2 33.3 62.1
1991-92 -1.9 3.8 3.2 2.3 3.7 35.0 38.6 27.4 34.4 54.4
1992-93 -5.6 7.6 5.5 5.9 7.4 34.0 36.6 32.0 40.4 41.8
1993-94 -6.2 7.8 5.6 7.1 7.8 33.0 35.8 37.1 46.3 29.5
1994-95 -4.8 6.3 5.1 5.3 6.5 34.2 36.9 40.8 49.6 29.1
1995-96 -3.4 4.8 4.4 4.3 5.0 35.0 37.8 42.8 52.4 19.5
1996-97 -3.0 3.7 3.5 2.9 3.9 35.0 37.4 43.7 52.4 15.6
1997-98 -0.1 0.7 0.9 0.1 0.8 36.1 38.5 41.5 49.6 11.5
1998-99 1.3 -0.6 -0.3 -0.8 -0.6 36.5 39.0 39.2 46.8 11.2
1999-00 2.3 -1.8 -1.6 -0.9 -1.7 36.5 39.4 36.4 43.6 14.7
2000-01 2.6 -2.0 -1.7 -3.9 -2.0 37.3 40.0 31.2 40.6 19.5

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Table B23: Historical series of government expenditure

£ billion (2000-01 prices) Per cent of GDP
Public Public   Public Public
sector sector General Total sector sector General Total
current net capital government managed current net capital government managed
expenditure expenditure expenditure expenditure expenditure expenditure expenditure expenditure
1970-71 152.8 28.9 194.6 201.1 32.4 6.1 41.3 42.7
1971-72 159.8 25.4 200.2 205.0 33.1 5.3 41.5 42.5
1972-73 167.9 24.5 209.1 212.8 33.0 4.8 41.1 41.8
1973-74 183.1 27.4 223.1 233.3 34.9 5.2 42.5 44.4
1974-75 191.3 27.3 236.9 241.6 38.7 5.5 47.9 48.8
1975-76 204.0 28.0 247.0 256.1 39.7 5.5 48.1 49.9
1976-77 209.6 22.9 240.6 257.6 39.7 4.3 45.6 48.8
1977-78 207.6 15.6 230.9 248.8 38.2 2.9 42.5 45.8
1978-79 214.7 13.6 242.8 254.5 38.2 2.4 43.2 45.2
1979-80 214.5 12.3 242.0 252.0 38.2 2.2 43.0 44.8
1980-81 226.5 10.1 255.5 262.4 40.8 1.8 46.1 47.3
1981-82 239.4 5.2 262.7 271.0 42.5 0.9 46.6 48.1
1982-83 246.5 8.7 269.9 280.5 42.6 1.5 46.7