The Treasury's annual survey of public expenditure is the central element in planning and controlling public expenditure. While its purpose remains similar to that in the 1970s, the principles governing its preparation, the methodology employed and the conduct of negotiations between the Treasury and the departments have changed with successive attempts to control both the total and programme allocations more effectively. This article examines and explains the process of preparing the survey, through the main stages from the decisions about the size of total public spending in the context of the government's macroeconomic strategy to the announcement in the Autumn Statement of the planned totals and allocations for the next three years and finally to the publication in February of the departmental Public Expenditure Chapters. Part I1 [Summer issue] analyses the effects and effectiveness of the survey processes, and discusses whose interests have been best served.