Percent of GDP

Parliament

Their Lordships sometimes ask defence related questions.

Lord Wigley (Plaid Cymru)

To ask Her Majesty’s Government what is the projected out-turn for defence expenditure in the current financial year; what proportion of the United Kingdom’s gross domestic product that figure represents; and what were the comparable figures in each of the previous five years. 

Lord Astor of Hever (Conservative)

As set out in the Department’s 2013-14 Supplementary Estimate, defence expenditure is projected to outturn at approximately £33,560 million.

The Office for Budget Responsibility (OBR) estimate gross domestic product (GDP) for this financial year to be £1,642,000 million. The proportion of projected outturn to GDP for this financial year is 2%.

Out-turn defence expenditure excludes the cost of military operations and is not the basis upon which the official NATO figure of defence spending as a proportion of GDP is calculated. For comparison, UK defence spending under the NATO definition is expected to be approximately 2.4% this year.

For the previous five financial years (FY) the proportion of outturn to GDP has been:

FY GDP Proportion Defence Outturn £ million GDP £ million
2012-13 2.2% 34,360 1,573,541
2011-12 2.4% 37,169 1,549,085
2010-11 2.6% 39,461 1,502,176
2009-10 2.8% 40,246 1,432,213
2008-09 2.7% 38,579 1,442,253

Outturn is recorded as the sum of Resource DEL plus Capital DEL minus Depreciation and Impairments.

Defence outturn figures are published at the following link:

http://www.dasa.mod.uk/publications/finance-and-economics/departmental-resources/2013/2013.pdf

Previous year GDP figures are published at the following link:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/269878/GDP_Deflators _Qtrly_National_Accounts_December_2013_update.xls

 

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