Paschal Donohoe (Dublin Central, Fine Gael)
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I thank the Cathaoirleach, and I welcome the opportunity to be here this evening. The Minister, Deputy McGrath, has already acknowledged the importance of the SPU in our annual budgetary cycle. From an expenditure perspective, it allows us to take stock of the significant and continued investment in our day-to-day public services and infrastructure, and outlines, on a no policy change basis, the path for Government expenditure over the medium term.

The range of economic forecasts contained in the SPU demonstrates the strength of our economy and our labour market in particular. It reminds us of the resilience of our economy and society in the face of so many challenges in so many years. The challenges have included Covid-19, Brexit, the war in Ukraine and most recently, the increased cost of living experienced by so many in the past 12 months.

I am acutely aware of the challenges, particularly with regard to the cost of living, as well as the need to build more homes while continuing to improve our public services. Careful management of our economy and public finances has allowed Government to do the following things from an expenditure perspective. First, to provide increased resources for core public services by investing in quality of life in Ireland, and continuing to build and make progress towards a strong, fair and more equal society in the future. Second, to deliver significant and essential infrastructural projects through our national development plan, to support our employment prospects, economic development and regional growth. Third, we have put in place considerable supports to provide assistance to our people and businesses towards the external challenges which we face.

With regard to investment, €80 billion was spent on core public services in 2022. This provided additional supports through day-to-day services in both the health and childcare sectors and in our schools. Through the national development plan, NDP, it supported continued investment in capital infrastructure, that is, the projects that make a real difference to our lives: our hospitals, our homes, roads and schools. For this year, up to €91.1 billion in gross voted expenditure is available across Departments and agencies. This represents an increase of almost €24 billion since before the pandemic in 2019. Within this ceiling, €85.9 billion will be provided by way of core expenditure. This funding will continue our strategy of supporting our core public services and providing growing investment in infrastructure under our NDP.

With regard to the first quarter of this year, almost €20 billion was spent across Departments and agencies. This reflects an increase over the same period in 2022 of €900 million or 4.9%. This performance is in line with our budgetary plans, and we will ensure that spending stays in line with agreed parameters throughout 2023. This level of spending reflects the range of investments set out in budget 2023, including enhanced social protection programmes, more affordable childcare and supporting our public sector workforce to deliver services in our country.

Capital spending of €1.2 billion at the end of March was an increase of 34% in comparison to the same time a year ago. This shows the significant progress in the roll-out of the NDP. Last month, I announced a package of actions aimed at enhancing project delivery for the plan. These reforms underline my Department’s renewed focus on securing the delivery of better outcomes, through capital spending, for the people of our country. This plan is the largest, greenest and most ambitious infrastructural plan to date. My Department aims to be at the centre of supporting national development plan, NDP delivery, and making the ambitions contained within the plan a reality. Out to 2030, we are investing €165 billion in new and upgraded infrastructure to meet the needs of our growing population. In 2023, more than €12 billion is available from the Exchequer for investment in public capital projects.

It is important to recognise that the country has seen a step change in capital investment in a short period. I recall being in this room in 2017, when total Exchequer capital investment stood at €4.6 billion. It is now at approximately €12 billion. It will deliver the infrastructure that we need for the digital transition of our economy, and will aim to provide solution in supporting the implementation of Housing for All and the climate action plan. This investment, over so many years, will transform employment opportunities, economic development and regional growth to support our growing population through the provision of new homes, schools, roads and hospitals.