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A report which a minister hopes will 'enable proper public understanding of Wales' fiscal position in the United Ki...
A report which a minister hopes will 'enable proper public understanding of Wales' fiscal position in the United Kingdom', is published today.

'Government Expenditure and revenue - Wales' sets out how government spending totals £14.7bn in Wales compared to tax receipts of £9.3bn.

'I am confident that this will enable proper public understanding of Wales' fiscal position in the United Kingdom,' said Welsh office minister Gwilym Jones.'

The summary of the report says:

'In 1993/94 it is estimated that total government expenditure on behalf of Welsh residents exceeded tax revenues raised in Wales by £5.3bn. This 'fiscal deficit', which excluded privatisation proceeds, is equivalent to around 20% of Welsh GDP. the comparable UK ratio is 8%. The UK ratio is usually lower; in 1993/94 government borrowing was at a cyclical peak.

'Total government expenditure for Wales (excluding privatisation proceeds) in 1993/94 is estimated to have been £14.7bn. This was 5.2% of the UK total, slightly above the proportion of the UK population which lives in Wales (5%). Expenditure per head on Wales was £5,040 compared with the UK average of £4,871.

'Total tax receipts raised in Wales in 1993/94 are estimated to have been £9.3bn (4% of total UK receipts). This is equivalent to receipts of £3,202 per head in Wales compared with £3,973 in the UK as a whole.

'Changes in the assumptions underlying the calculation of these figures would affect the estimated size of the Welsh 'fiscal deficit'. However, even relatively large changes to the order of magnitude would have little effect on the conclusion that in 1993/94, Wales had a substantial budget deficit.'

The report presents figures on the allocation of government expenditure on those programmes which are the responsibility of the secretary of state for Wales and, by apportioning other spending (such as defence) which is incurred on behalf of the UK as a whole, completes the picture of government expenditure on behalf of Wales.

The report also provided an estimate of the revenue from Wales, including income tax, national insurance contributions, value added tax, local authority revenues and other taxes.

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