War Economy
War Expenses Account Compared with other Revenue and Expenditure Items
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War Expenses Account Compared with other Revenue and Expenditure Items
It is useful to bring together the main items of revenue and expenditure, as they were recorded in the Consolidated Fund and the Social Security Fund, and to compare the War Expenses Account items against them. This is done in the table on p. 274. The accounts which record government capital formation and development loans are excluded from this analysis.3
War expenditure, at a total of £615 million for the seven financial years 1939–40 to 1945–46, made the totals of £133 million for permanent appropriations, £133 million for annual appropriations, and £113 million for social security look comparatively insignificant.
– 274 –
| Receipts | £ million |
| Special war taxation | 225 |
| Social Security charges and levies | 86 |
| Other taxation | 275 |
| 586 | |
| War loans2 | 242 |
| Lend-Lease and Mutual Aid | 111 |
| Interest | 29 |
| Other receipts for war purposes | 23 |
| Other receipts | 20 |
| —— | |
| total | 1,011 |
| Payments | £ million |
| Permanent appropriations | |
| Interest | 83 |
| Amortisation and management of debt | 23 |
| Exchange | 9 |
| Transfer to Highways Account | 15 |
| Other (excluding defence) | 3 |
| 133 | |
| Annual appropriations | |
| Administration, law and order | 34 |
| Development of primary and secondary industries | 20 |
| Social services (excluding payments from Social Security Fund) | 72 |
| Maintenance of public works | 6 |
| Other | 1 |
| 133 | |
| Social Security expenditure | 113 |
| War expenditure3 | 615 |
| Excess receipts over payments | 17 |
| —— | |
| total | 1,011 |
The items in italics refer to War Expenses Account.
– 275 –
3 Government capital formation is discussed in other chapters. The purpose here is merely to make some comparisons which will put War Expenses Account items into perspective. Chart 57 has a bearing on these comparisons.
1 Loans for national development and major items of government capital formation, as recorded through National Development Loans Account, Public Works Account, Electric Supply Account, Land for Settlements Account, etc. are excluded.
2 Excluding £53 million recorded as borrowed under the Memorandum of Security, but repaid by 31 March 1946.
3 Excluding £55 million for redemption of securities.
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