80

APPENDIX

£ million

Private consumption at market prices (made upof indirect taxes and rates £670 million andcurrent value £3,710 million including currentdepreciation as above) ..... 4,380

Private saving (made up of £290 million new in-vestment as above and £80 million lent to theGovernment to cover the excess of the cost ofGovernment operations over revenue from taxesand trading profits) . . . . . .370

Direct taxes ....... 550

5,300 :

It may be useful to add a list of the principal elementsout of which these or other concepts of income can be built up.

Government Income and Outlay (Central and local)

7L iJlHtlOlV

Government Income: Direct Taxes . . . 550

Indirect Taxes . . . 460

Rates .... 210

Government Trading Profits 50

Loans from the public (net) 80

1,350

Government Outlay: Transfer Payments . . 500Govt. Services . . . 850

1,350

The above Government Outlay does not include Govern-ment expenditure on investment in new houses, roads, etc.(£50 to £100 million), since this has been already includedin the estimate of investment (which, being based on theCensus of Production, inevitably includes all such invest-ment whether by Government or private agencies). Tobalance this, the above figure for loans from the public iscorrespondingly reduced below the actual amount borrowed

1 The reconciliation between my Economic Journal figure of £5,700million and the above figure is as follows : deduct £380 million for depre-ciation included twice in Mr.Clark's figure (total current depreciation£420million less £40 million upkeep of roads by the Government not includedtwice), £50 million for Government trading profits previously includedin private profits, and £30 million due to a revised estimate of theGovernment deficit. The logical difficulties lying behind these figuresI am discussing in detail in the March (1940) Economic Journal.