Brendan Howlin (Wexford, Labour) | Oireachtas source

In setting budgetary allocations, the Government balances the requirements of bringing sustainability to the public finances, promoting and supporting economic recovery and protecting the most vulnerable in society. 

The Government's overall fiscal target for next year is to reduce the general Government deficit to below 3% of GDP by the end of 2015. The scale of the adjustment required to meet this target will be decided by Government in the context of the budget, based on the most up-to-date economic and fiscal data at that time. In this regard, the most recent economic information is very encouraging.

I announced at budget time that our second three-yearly comprehensive review of expenditure would be carried out this year. This review is under way and will be a focused examination of expenditure by all Departments, taking account of Government spending priorities in order to identify areas of potential savings and efficiencies.  In parallel, a separate review of capital expenditure is also being conducted with a view to realigning future investment priorities and to reset the medium-term capital envelopes for the next five years.

Targeting capital investment on projects with a high employment content can benefit local economies throughout the State. To this end, since July 2012, I have made a series of announcements in relation to additional capital investment as part of a stimulus package. These projects are spread around the country in order to create economic activity and jobs on a regional basis.

Public service reform has been a key element of the Government's strategic response to the economic crisis and is a central theme in the programme for Government. The Public Service Reform Plan 2014-2016, published in January this year, contains a detailed action plan with clear timelines. Public procurement is a key area of reform. In carrying out reforms in this area, the Government is committed to ensuring that SMEs are encouraged to participate in procurement and to maximising the social benefits, such as employment and training opportunities, that can be delivered under public contracts. The implementation of measures in the public service reform plan relating to SME access to public procurement will, I am determined, facilitate growth.

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