commission on fiscal imbalance 合集

Total uk control of all borrowing would now be

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Unformatted text preview: elf-Financed Expenditure (LASFE). If the Scottish Parliament were to levy the tartan tax, the expenditure funded in this way would be scored as AME. Although there is greater transparency post-devolution about the system, largely thanks to the block rules guidance having been published (Treasury, 1999a, 2000a), there is not transparency about the numbers. In consequence, it is not possible to place values in each cell of Figures 4, 5 and 6. An indication of the predominance of Barnett formuladetermined DEL is that, for 1999-2000 plans, this accounted for 79% (Scotland), 87% (Wales) and 84% (Northern Ireland).14 In the absence of better and more relevant data, interterritorial comparisons fall back on the figures for ‘Identifiable General Government Expenditure’ (GGE) published annually by the Treasury in a document now known as ‘Public 13 14 268 The 1998 CSR saw the introduction of a new public expenditure control system, focusing upon Total Managed Expenditure (TME), itself composed of Departmental Expenditure Limits (DELs) and Annually Managed Expenditure. From 2001-02, government accounting has switched from a cash basis to an accruals basis, under the project known as Resource Accounting and Budgeting (RAB) (Treasury, 2001a). The calculation for Northern Ireland excludes social security benefits. Commission on Fiscal Imbalance Expenditure Statistical Analyses’ (PESA).15 Taking data primarily from the 2000 issue (Treasury, 2000b), Figure 7 shows public expenditure relatives for Scotland, Wales and Northern Ireland, relative to England = 100 (rather than the published indexes with UK = 100). For each of these three territories, there is a line representing Identifiable GGE (solid line) and another representing Identifiable GGE excluding Social Security (dashed line). Although these are very imperfect proxies for devolved expenditure (data for which are unavailable), the striking point is that the relative (England = 100), when social security expenditure is excluded, is much higher for Scotland and Northern Ireland, but not Wales. There have been longstanding complaints about the poor quality of expenditure data for the English regions, notably a large amount of expenditure identified to England but not to individual regions. There are better data in the 2001 issue of PESA for 1998-99 and 1999-2000, the latter of which are tabulated in Figure 8. When interpreting the relatives on individual programmes, attention should be paid to the UK weight, indicating the percentage of total expenditure accounted for by this programme. The entries for Totals in each column are weighted averages. These figures show marked variations in levels and compositions among territories and regions. Certain figures should be interpreted with great caution, as, for example, the figures for ‘Housing’ in some prosperous regions are clearly affected by the proceeds from council house sales being netted off. Much greater expenditure disaggregation is a precondition for analytical work on these differe...
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This note was uploaded on 03/06/2013 for the course ECON 220 taught by Professor Paulo during the Spring '13 term at University of Liverpool.

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