§ Mr. Lilley
The importance of local government within the economy is generally measured on the basis of their expenditure. Such expenditure as a percentage of GDP, using definitions consistent with the information contained in the financial statement and Budget report, is given in the table.
Local authority expenditure1 as a percentage of GDP Per cent. 1960 9¼ 1970 13¼ 1979 12½ 1985 11¾ 1989 10½ 1990–912 11 1 Current expenditure on goods and services, current grants and subsidies, interest, capital expenditure and net lending. 2 FSBR forecast. If the effect of the abolition of domestic rates on the measure of GDP is excluded the figure becomes 10¾ per cent.