Public expenditure outturn update
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Today’s release of public expenditure statistics presents updated estimates
of key public spending outturn series against two frameworks. The budgeting
framework (used in Tables 1 to 6) deals with spending within central government
departmental budgets, which is how the Government plans and controls public
spending. This budgeting framework is largely based on resource accounting
The second framework is the expenditure on services framework (used in Tables
7 and 8), which broadly follows National Accounts definitions. This framework is
used for statistical analyses in these outturn updates as well as in the annual
Public Expenditure Statistical Analysis (PESA) publication. Expenditure on
services covers current and capital expenditure by the whole of the public
sector to deliver services.
statistics published today are available on the Treasury website
Changes to tables in this release
This National Statistics release contains the first view of 2009-10
provisional outturn, updating estimated outturn presented in the June Budget and
in PESA 2010.
The accounting adjustments table (previously Table 6) has not been included in
this release as the underlying data have not yet been supplied to the ONS for
inclusion in the National Accounts. The accounting adjustments table will next
be published alongside the October public expenditure outturn update.
Revisions contained in this release
There are no significant revisions to 2008-09 backwards.
1. These data are being released in accordance with the UK Statistics
Authority Code of Practice for Official Statistics.
Public expenditure by budgeting category (Tables 1 to 6)
2. Presentation of public expenditure in Tables 1 to 6 follows the Treasury’s
budgeting and control framework for 2010-11, which splits spending into resource
and capital budgets. These budgets are further split into Departmental
Expenditure Limits (DEL) and Annually Managed Expenditure (AME). DELs are firm
three-year spending limits set for departments. Spending that cannot reasonably
be subject to firm multi-year limits is included in AME, alongside most other
3. DEL and AME (including accounting adjustments) together make up Total
Managed Expenditure (TME), an aggregate that is drawn from the National Accounts
and is defined (in National Accounts terms) as public sector current expenditure
plus public sector net investment plus public sector depreciation. Further
details about the budgeting framework are contained in Annex C of PESA.
Public expenditure on services
4. The expenditure on services framework broadly represents the current and
capital spending of the public sector, so is similar to Total Managed
Expenditure (TME). The main divergence is where certain transactions that score
within TME cannot be allocated to functions on a consistent basis, so are
excluded from the expenditure on services framework (e.g. depreciation).
Further information about the expenditure on services framework is contained in
Annex E of PESA. The allocation of spending to function is generally consistent
with the UN Classification Of the Functions Of Government (COFOG).
Key differences between the two spending frameworks
There are three key differences between the budgeting and expenditure on
services frameworks. These are:
- the budgeting framework is based on resource accounting principles so
includes non-cash items that are then removed in the accounting adjustments to
get to TME. The expenditure on services framework essentially just includes
those items that are classified as part of TME;
- the budgeting framework includes all central government (CG) spending so
it shows CG support to the local government (LG) and public corporation (PC)
sectors, plus the self-financed spending of these sectors. The expenditure on
services framework excludes CG support to other sectors – it then includes
total LG and PC spending. This differing treatment is reflected in the
economic category tables; and
- the budgeting framework is used by the Government to plan and control
spending. The expenditure on services framework is designed for statistical
analyses of spending, particularly for functional and country/regional
Sources and methodology
5. Treasury public spending statistics are compiled from accounting data.
Central government spending is reported by Whitehall departments and the
devolved administrations. DWP supplies data on local government social
protection spending. DCSF supplies data on local government education spending
in England. All other local government spending data are supplied by CLG and the
Devolved Administrations. The spending aggregate, TME, was supplied by the
Office for National Statistics (ONS) and is consistent with the joint ONS/HMT
Public Sector Finance Statistics release of 18 June 2010.
6. Data in this release are largely sourced from the internal accounting
systems of Whitehall departments and devolved administrations. Where Resource
Accounts for 2009-10 have been finalised, the data reported on the Treasury’s
spending database will be consistent with this. Data for the larger departments
are formally signed off by Finance Directors when they are supplied.
7. Within the Treasury, data are initially validated by department-facing
spending teams, prior to more rigorous validation by Treasury statisticians. For
this release, this has included a detailed analysis of those transactions that
have a revised treatment under the new budgeting framework.
8. The data issues that delayed this release have been resolved and the
dataset has been quality assured by Treasury statisticians as being of the
required quality after rigorous testing.
Revisions policy for these public expenditure outturn updates
9. As announced in press notice PN/15/10, these National Statistics releases
have been de-coupled from the timing of policy events, so that they can be
released on a more timely basis. The proposed new release dates, and the main
data updates that they will include, are as follows:
- July (this release) – provisional outturn for central government
- October – final outturn for central government (Whitehall) departments and
provisional outturn for local government;
- February – final outturn for local government and Devolved
- April – updated Country and Regional Analysis (CRA) figures (the main PESA
10. The Treasury National Statistics release calendar and the UK Statistics
Authority release hub have been updated to reflect this new schedule.
Accessibility of the underlying datasets
11. The data in the tables in this release are supplemented by links to
historical functional series and to interactive data sets published in excel,
which are available on the Treasury website . Interactive datasets have
previously only been made available alongside the main PESA release, but
budgeting and expenditure on services datasets (the two datasets underlying the
two frameworks in this release) will now additionally be made available
alongside in-year updates. The Country and Regional Analysis interactive
datasets will continue to be made available annually.
A National Statistics publication
12. 'National Statistics' are the distinct subset of official statistics that
are produced in accordance with the professional standards set out in the UK
Statistics Authority’s ‘Code of Practice for Official Statistics’. Public bodies
that produce National Statistics have a statutory duty to comply with the Code.
The National Statistics logo is therefore your assurance of statistics produced
to the highest professional standards.
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Article Published/Sorted/Amended on Scopulus 2010-07-27 11:53:13 in Business Articles