Brendan Howlin (Wexford, Labour) | Oireachtas source

The Government decides departmental allocations in the budget each year, with the full detail of these allocations being set out in the Estimates approved by the Dáil. All Ministers and their Departments are responsible for ensuring their expenditure is undertaken in line with the voted allocations. At the beginning of each year every Department sets out its expected profile of expenditure on a month by month basis and during the course of the year each Department reports monthly on its actual performance against this expenditure profile. My Department is in regular communication with Departments and Offices to ensure expenditure is being controlled and we monitor the drawdown of funds from the Exchequer against the published expenditure profiles. Where necessary, my Department regularly meets line Departments to review financial management.

The comprehensive expenditure report 2012-14 introduced a new model of multi-annual budgeting for current expenditure, called a medium-term expenditure framework, MTEF. The MTEF was initiated on an administrative basis and now, following the passage of the Ministers and Secretaries (Amendment) Act 2013, the arrangements for fixed spending ceilings for each ministerial Vote group for a rolling three year period have a statutory basis. The details of the operation of the ministerial expenditure ceilings are set out in an administrative circular issued by my Department. The circular details the rules and arrangements for planning and managing current expenditure within the fiscal structures in place at European level. It includes provisions to assist with management of departmental expenditure, including control measures to ensure compliance with ministerial expenditure ceilings.

The new control measures provide for monthly reporting to the Government where a Department is spending in excess of its profile and there is a substantive risk. If any such overspend is not corrected within two months, a formal review will be conducted of the relevant Department’s expenditure and this will be led by the Department of Public Expenditure and Reform. If the relevant Department fails to implement recommendations of the formal review, as agreed by the Government, and breaches the expenditure ceiling, the Government may require the Department to repay the overrun in the following year.

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