Chapter 1 - Finance
                       
Table 1.2 Public Expenditure by Departmental Grouping
This table (taken from Table 1.5 and Table 1.10 of Public Expenditure Statistical Analyses (PESA 2008) HC 489 produced by HMT) examines the expenditure on defence within the wider public expenditure framework. It presents Departmental Expenditure Limits, resource and capital, and Annually Managed Expenditure (AME) by departmental groupings.
 
It is not possible to show figures for all individual departments separately and so departments are grouped broadly on the basis of ministerial responsibilities. A detailed list of departmental groupings can be found in PESA 2008 Appendix B.
 
Annually Managed Expenditure (AME) relates to expenditure outside the Departmental Expenditure Limits (DEL) but included in Departmental Budgets. This is typically demand led items such as social security benefits, certain pension allowances and tax credits for individuals.
                       
DELs are firm plans for three years for a specific part of a department's expenditure. In general DEL will cover all running costs and all programme expenditure. DEL includes relevant non-cash items such as depreciation, cost of capital charges and provisions.
Current Prices (£ billion)
  Outturn   Outturn   Outturn   Outturn   Outturn   Estimated Outturn
2002/03 1 2003/04   2004/05   2005/06   2006/07   2007/08
Total Government Resource DEL2
 229.9 r 245.1 r 258.8 r 277.6 r 291.2   313.1
Of which:
                      
                     
Children, Schools and Families2
 10.6 r 11.9 r 12.6 r 14.3 r 42.1   44.9
Health
 57.1   63.6   69.1   76.4   80.4   89.2
Of which: NHS England
 55.4   61.9   66.9   74.2   78.5   87.1
                     
CLG Local Government3
 37.4   40.9   43.3   46.2   22.5   22.7
Home Office2
 7.3 r 7.9 r 8.0 r 8.3 r 8.3   8.7
Defence4
 36.5   31.4   31.3   33.5 r 33.5   36.7
Work and Pensions2
 7.0 r 7.8 r 8.0 r 8.0 r 7.9   8.1
Current Prices (£ billion)
Outturn   Outturn   Outturn   Outturn   Outturn   Estimated Outturn
2002/03 1 2003/04   2004/05   2005/06   2006/07   2007/08
Total Government Capital DEL2
 27.1 r 30.5 r 32.8   35.2 r 38.9   43.9
Of which:
                      
                     
Children, Schools and Families2
 2.7 r 3.5 r 4.1 r 4.4 r 4.1   5.5
Health
 2.1   2.7   2.7   2.2   3.2   3.6
Of which: NHS England
 2.1   2.6   2.6   2.2   3.1   3.3
                     
CLG Local Government3
 0.2   0.2   0.3   0.3   0.2   0.1
Home Office2
 0.7 r 0.7 r 0.6 r 0.6 r 0.6   0.8
Defence
 6.1   6.0   6.7   6.4   7.1   8.1
Work and Pensions
 0.3   0.2   0.3   0.4   0.2   0.1
Current Prices (£ billion)
Outturn   Outturn   Outturn   Outturn   Outturn   Estimated Outturn
2002/031   2003/04   2004/05   2005/06   2006/07   2007/08
Total Government AME2,5
 160.0 r 164.8 r 173.0 r 187.5 r 206.3   221.2
Of which:
                      
                     
Children, Schools and Families2
 7.2 r 6.6 r 6.3 r 8.0 r 8.6   10.7
Health
 4.7   6.3   6.7   10.1   10.5   14.6
Of which: NHS England
 0.1   0.1   0.3   0.8   0.3   0.6
                     
CLG Local Government3
 0.2   0.4   0.5   0.5   1.0   0.9
Home Office2
 1.7 r -   -   -   0.3   0.4
Defence6
 *   1.0   0.9   0.9   0.6   0.5
Work and Pensions2
 99.9 r 103.8 r 110.7 r 115.2 r 119.3   129.6
                     
Total Government DEL (RDEL + CDEL)2,7
 256.9 r 275.6 r 291.6 r 312.8 r 330.0   357.1
                     
Total Government AME2,5
 160.0 r 164.8 r 173.0 r 187.5 r 206.3   221.2
                     
Total Government Spend (RDEL + CDEL + AME)2,6
 416.9 r 440.4 r 464.6 r 500.3 r 536.3   578.2
Source: HMT Public Expenditure Statistical Analyses HC 489 (Table 1.5 & Table 1.10)
1. The figures presented in this table for 2002/03 are different from the ones shown in Tables 1.1, 1.3 and 1.5 as the PESA figures for these years have
    been recast by HM Treasury on the Stage 2 RAB definition of DEL and AME whereas the MOD reported the accounts on Stage 1 definitions until 2003/04.
2. Changes in all years are a result of machinery of government changes.
3. CLG Local Government was introduced in 2006/07 but it is comparable with the "Local Government" category referred to in previous editions of UKDS.
    This category is due to the creation of the "Department for Communities and Local Government" established on 5 Apr 2006.
4. For 2003/04 the Defence figure includes the supplementary estimate for asset revaluation.
5. Total figures include Defence figures for AME as shown in PESA 2008 and not as shown in this Table.
6. The figures for Defence AME from 2003-04 onwards have been adjusted to align with the data contained in Tables 1.1, 1.3 and 1.5 which excludes
    contributions to the Armed Forces Pensions Scheme.
7. These figures are different from PESA 2008, which presents Total DEL as RDEL + CDEL less depreciation.