Seán Sherlock (Cork East, Labour) | Oireachtas source

The Bill has been brought forward to provide a statutory basis for the multi-annual medium-term expenditure framework. I am pleased Deputies have engaged on the Bill and would like to respond briefly to some of the points raised on Second Stage and which we can debate further on Committee Stage next week.

Deputy Fleming raised the fact that non-voted expenditure is outside the scope of the expenditure ceilings being legislated for in the Bill. The position is that non-voted expenditure represents expenditure which the Oireachtas has declared by law is to be paid from the Central Fund without annual reference to the Dáil. These are items which are a permanent charge on the State revenues and represent those services which are payable out of the Central Fund by the continuing authority of statutes and are not, therefore, subject to the same type of annual process as voted expenditure. The largest item is the service of the national debt. Other items include Ireland's contribution to the EU budget; the salaries, pensions and allowances of the President, Judiciary and Comptroller and Auditor General; and the expenses of returning officers. It is not true the Dáil is not made aware of Central Fund activity. It is regularly reported in Exchequer statements and the Department of Finance each year publishes detailed accounts of the Central Fund for the previous year, known as the finance accounts. The accounts are prepared under section 4 of the Comptroller and Auditor General (Amendment) Act 1993 and contain detailed analysis and classification of receipts and issues of the Central Fund as well as details of the national debt. They must be laid before Dáil Éireann not later than 30 September. The Bill does not deal with debt service or other Central Fund charges and consequently does not propose any change to this long-standing practice, which is in accordance with the Constitution.

The Government is in favour of, and is taking further actions to bring about, improvements in fiscal reporting and fiscal transparency generally.

This will enable Ireland to realise a number of benefits from enhanced fiscal disclosure, primarily in respect of the understanding of and access to fiscal information, which should help to promote and encourage market investment in Government debt.

With this in mind, the Department of Public Expenditure and Reform, with the Department of Finance and other agencies, will take appropriate steps to provide more comprehensive, timely and reliable data for fiscal decision making, demonstrate the Government's awareness and management of fiscal risks, promote a more informed public debate on fiscal policy challenges and choices, reassure markets of the overall sustainability of the public finances and facilitate compliance with current and future EU fiscal reporting requirements.

Deputy McDonald raised the issue of equality budgeting, which we can discuss further on Committee Stage. The Department of Public Expenditure and Reform considers the effect of measures across all elements of society when assessing proposals for changes in spending.

Among other matters, Deputy Donnelly raised the issue of the timetable for the annual budgetary process. I am happy that the Government has reformed the process substantially and that, in line with our EU commitments, we will have this year's budget in October and the Revised Estimates will be published before the year end. As Deputies will acknowledge, this is an improvement on the present system, whereby the budget is in December and the Revised Estimates volume, REV, is discussed in the middle of the year.

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