Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

My thanks to Deputy Farrell for the question. That is the budgetary framework that has been agreed by Cabinet. That is, in effect, as Deputy Farrell has correctly described, an estimate at this stage. That is what it is. It is a work in progress of the amount of Covid-19 related expenditure that we will have to incur again next year. It is subject to considerable uncertainty because it is based on certain assumptions around the economy and the number of people who will need employment and income supports and so on. There is a high degree of certainty that we will have to continue to support transport, education and health services through next year. The figure remains a work in progress.

To be thorough with the committee, I will offer some detail on the €3 billion. Deputy Farrell correctly described this as made up of €2 billion and €1 billion. That is before any new budget day decisions. If we want to make any new initiatives in health, housing and other areas, then we need to go beyond that. It is our intention to go beyond that and to have some new measures, but the exact quantum is not confirmed at this stage. We are working within real constraints.

The delivery of new policy initiatives and delivering on any programme for Government commitments would involve additional expenditure because, in effect, the €12 billion Deputy Farrell has referred to is largely to stand still. It is for dealing with Covid and pre-commitments and increasing the capital budget from last year's budget as well as allowing for a modest amount for existing levels of service and potential new measures.