Dáil Éireann debate -
Wednesday, 19 Nov 1997

Vol. 483 No. 1

Written Answers. - GDP Statistics.

Olivia Mitchell

Question:

59 Ms O. Mitchell asked the Minister for Finance the percentage of GDP represented by gross non-capital supply service expenditure in each of the years from 1992 to 1996; the expected percentage in this regard in 1997 and 1998; his views on an attainable target in this regard; and if he will make a statement on the matter. [19607/97]

Minister for Finance (Mr. McCreevy)

The percentage of Gross Domestic Product represented by gross non-capital supply service expenditure in each of the years from 1992 to 1996 and the expected percentage in this regard in 1997 and 1998 is as follows:

1992	—	31.4 per cent
1993	—	31.5 per cent
1995	—	31.3 per cent
1994	—	30.1 per cent
1996	—	29.0 per cent
1997	—	28.8 per cent
1998	—	27.3 per cent.

The 1997 and 1998 figures quoted above are based on the 1997 forecast outturn and 1998 estimates figures for gross non-capital supply services included in Table 6 of the 1998 Abridged Estimates Volume published on 12 November 1997 and the latest Department of Finance estimates of Gross Domestic Product for those years which are subject to revision.

The Government's Programme, An Action Programme for the Millennium, indicates that one of its key priorities will be ".to reduce overall Government spending as a share of national output". The programme does not contain a specific percentage target in this regard. It also refers to reducing overall Government spending rather than gross current supply services spending as a share of national output. The programme includes specific targets to limit the growth in net current spending to 4 per cent and the growth in capital spending to 5 per cent on average up to 1999. Net current spending for this purpose comprises expenditure on net non-capital supply services and central fund services.

Setting limits on the growth in spending is, a more effective means of controlling expenditure. A specific target related to the share of national output is not as restrictive because in periods of high economic growth it would permit substantial increases in spending. As long as the rate of increase in spending was less than the rate of increase in Gross Domestic Product, the target would be achieved.