Seán Sherlock (Cork East, Labour) | Oireachtas source

-----and we have taken thousands of workers out of the universal social charge. Let me also say the national economic dialogue is about ensuring we have an informed and mature discussion on the short and medium-term priorities of the Government and beyond. Undoubtedly, in recent years considerable sacrifices were made by the people of Ireland and it posed challenges in terms of the progressive realisation of economic, social and cultural rights in Ireland in line with the covenant before us now. However, as I have stated, we are already seeing the fruits of our labour.

The public finances are under control with the deficit falling below 3% this year and debt levels are set to move down towards the European average in the next few years. As a result we will be in a position to implement another expansionary budget this year and every year out to 2020 if this is deemed prudent and appropriate. We will meet our medium-term objective of a balanced budget in structural terms over the forecast horizon.

In order to return stability to the public finances, gross voted expenditure was reduced from its peak of more than €63 billion in 2009 to €54 billion in 2014. In implementing expenditure reductions, the Government's priority has been to protect key pubic services and social supports to the greatest extent possible at a time of increasing demand. This targeted approach has meant that primary social welfare rates such as pensions have been fully maintained since the Government took office. Our commitment to protecting society's most vulnerable is illustrated by data published by EUROSTAT earlier this year showing that Ireland's system of social transfers and redistribution of wealth and income to those most in need is among the most effective in Europe at reducing the at-risk-of-poverty rate.

Budget 2015 marked a turning point when expenditure reductions were no longer required to meet our fiscal targets. We are now in a position to provide targeted increases for key services. In the area of education, we have sought from the beginning to protect DEIS expenditure, which prioritises the educational needs of children and young people from disadvantaged areas. In 2015, gross voted current expenditure across the key sectors of social protection, health and education will amount to more than €40 billion-----

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