Oireachtas Joint and Select Committees

Wednesday, 26 April 2023

Committee on Budgetary Oversight

Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I thank the Deputy. I will make a brief point in response to what she said about ELS. Such funding will still deliver decisions on budget day that are part of the budget day package. To give a concrete example, there are hiring decisions that need to happen in our public service due to demographics, including, for example, the number of teachers. That will lead to the announcement by the Minister for Education, Deputy Foley, of the hiring of more teachers.

The Deputy asked about the National Training Fund. I am aware of the surplus and the debate that is under way in that regard. The core reason that surplus does not yield new or additional spending is that regardless of how the expenditure is funded, it is still defined as normal government expenditure and is, therefore, subject to the Government's spending rules. It is also, of course, subject to the overall budget rules for the European Union. The key constraint is our own decision that it is part of the 5%. That is the key reason. Even though funding for training does come out of the National Training Fund, because it leads to expenditure, it is normal government expenditure and is, therefore, accounted for in the 5% rule.