Overview of definitions, processes and data
Total public expenditure
The budgeting and control framework
Data
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Total public expenditure definitions
Total Managed Expenditure (TME) is the Government's preferred measure of total public expenditure. It is derived from measures in the National Accounts. National accounts give an overall picture of economic and financial activity in the UK and are based on international guidelines in the European System of Accounts 1995 (ESA95). For more on national accounts see ONS UK National Accounts.
TME includes the current and capital expenditure of the public sector but not financial transactions such as government lending or buying of shares. Public sector capital expenditure includes fixed capital formation (expenditure on capital assets, both tangible such as buildings, machines, and vehicles, and intangible such as computer software) and capital grants to the private sector. The term "Gross investment" is before depreciation but after the sales of capital assets. "Net investment" is gross investment less depreciation.
TME covers expenditure by the whole public sector; central government, local government, and public corporations. Central government comprises Parliament; government departments and their executive agencies; the devolved assemblies of Scotland and Wales; Northern Ireland departments; government funds such as the National Loans Fund; the foreign exchange official reserves; non-departmental public bodies; and various other public bodies that are controlled and mainly financed by central government. Public corporations are publicly owned trading bodies with day to day operating independence. The Post Office is an example of a public corporation.
TME is a consolidated measure in the sense that most transactions between parts of the public sector do not add to TME. So, for example, total local authority expenditure excludes capital grants paid to public corporations and interest paid to central government. Similarly central government own expenditure excludes grants to local authorities and public corporations since the expenditure financed by those grants is included in the "own expenditure" of those sectors. Government purchases from and subsidies to public corporations do however score in TME.
The budgeting and control framework
TME can also be presented in terms of the way the Government sets budgets for spending by the public sector. TME is the sum of Departmental Expenditure Limits (DEL) and Annually Managed Expenditure (AME).
Departments can be set separate Resource and Capital Budgets. These budgets may be split into Departmental Expenditure Limits (DEL) and Annually Managed Expenditure (AME). DELs are firm plans for three years for the major part (in most cases) of each department's expenditure. In general the DEL will cover all administration costs and most programme expenditure. In a few exceptional cases, spending is not recorded in DEL but is instead in departmental Annually Managed Expenditure (AME) because it cannot reasonably be subject to close control over a three year period.
Information on how the Government plans and controls public expenditure is available from the Public Spending Framework pages.
Data
TME is published quarterly by ONS in the Public Sector Accounts. The central government components of TME can also be updated monthly as part of the public sector finance statistics release. Latest TME data (and its components) are available in the Public Finances Databank .
Public spending budgetary data are published annually in chapters 1 and 2 of Public Expenditure Statistical Analyses (PESA). Key public spending budgetary data are updated at 3 other times of the year through the Public Spending Annual Outturns News Release
Internal links
Public Expenditure Planning and Control in the UK
Comprehensive Spending Review
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