asked the Minister for Finance if the rate of growth in public current expenditure and taxation as a proportion of GNP has been greater than the rate projected in the Third Programme for Economic and Social Development; if so, by how much; and if he will make a statement on the matter.
Written Answers. - Public Expenditure and Taxation.
61.
As a percentage of GNP public current expenditure, at constant prices, has grown from 28 per cent in 1968-69 to an estimated 31 per cent in 1970-71 as against a projected level of 31.4 per cent in 1972-73. Taxation has grown from 29 per cent, in current values, to an estimated 31 per cent between 1968-69 and 1970-71 as against 31 per cent projected in the programme for 1972-73.
I would refer the Deputy to the "Third Programme Review" for a full discussion of trends and to my recent budget speech for a statement of Government policy in relation to the growth of public expenditure and taxation.
62.
asked the Minister for Finance if he will state, in relation to each of the following three categories of taxation: (1) taxes on income, (2) taxes on capital and (3) taxes on expenditure, the percentage of total taxation and GNP which each represents; and if he will comment upon the comparison between these figures and the targets for 1970 set out in the Second Programme for Economic Expansion and the equivalent figures for each of this country's prospective EEC partners.
63.
asked the Minister for Finance if he will state, in relation to paragraph 13 of chapter 12 of the Second Programme for Economic Expansion, the amount (at 1960 values) of current public expenditure in 1970 devoted to (1) net current expenditure on goods and services, (2) transfer payments and (3) subsidies; and the percentage of the total which each of the foregoing represents; and if he will comment on the trends revealed in these figures, with particular reference to the projections made in the Second Programme.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 62 and 63 together and to circulate with the Official Report the statistical material requested.
The level of taxation, as a percentage of GNP, was generally higher in 1970 than was implied in the Second Programme projections, though the relative importance of the constituents was broadly in line with that expected.
Total current expenditure of public authorities, at 1960 values, was also in excess of Second Programme expectations for 1970. The pattern of expenditure differed greatly from what was envisaged. Subsidies and transfer payments accounted for a much greater share and expenditure on goods and services a lesser share than that projected. This is due partly to the greater emphasis on social expenditure during the sixties.
It should be noted that the projections of the Second Programme for 1970 have been replaced by those of the Third Programme spanning the period 1969-1972.
1968 is the latest year for which internationally comparable data for taxes are available for EEC member and applicant countries. Satisfactory international comparisons of taxes on capital are not available. The 1968 data show that tax receipts as a percentage of GNP are much lower in Ireland than in any of the EEC and applicant countries. The proportion of taxes accounted for by taxes on income is, however, higher in the other countries than in Ireland.
Following is the tabular statement:
Total Taxation in 1970 (Estimated)
|
As a percentage of total taxation |
As a percentage of GNP |
|
|
% |
% |
|
|
(1) Taxes on income (including social insurance contributions) |
35.1 |
10.9 |
|
(2) Taxes on capital |
1.2 |
0.4 |
|
(3) Taxes on expenditure (including local rates) |
63.7 |
19.7 |
Current Expenditure of Public Authorities* 1970
|
At 1960 values |
As a percentage of total expenditure |
|
|
£ |
% |
|
|
(1) Net current expenditure on goods and services |
117.0 |
39.5 |
|
(2) Transfer payments (including National Debt Interest) |
131.3 |
44.3 |
|
(3) Subsidies |
48.1 |
16.2 |
|
TOTAL |
296.4 |
100.0% |
*Including extra budgetary funds and local authorities.
64.
asked the Minister for Finance the percentage increase in central Government current expenditure since 1964-65 accounted for by (a) remuneration, (b) debt services, (c) social welfare, (d) economic services and (e) other expenditure; and the percentage of estimated central Government expenditure for 1971-72 to be paid out under each of those headings.
As the reply is in the form of a tabular statement I propose, with your permission, a Cheann Comhairle, to circulate it with the Official Report.
Following is the statement:
|
(1) |
(2) |
|
|
Percentage increase (1971-72 over 1964-65) in central Government current expenditure accounted for by: |
Estimated expenditure for 1971-72 as a percentage of total current expenditure |
|
|
% |
% |
|
|
(a) Remuneration* |
37.4 |
28.0 |
|
(b) Debt services |
31.8 |
20.6 |
|
(c) Social Welfare |
19.7 |
13.9 |
|
(d) Economic services |
31.8 |
20.6 |
|
(e) Other expenditure |
27.5 |
16.9 |
|
Total |
148.2 |
100.0 |
*Includes £6.5 million provided for in 1971 Budget.