Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The mid-year expenditure report indicated that my Department would examine proposals for the options available for reinforcing the role of three-year expenditure ceilings in further restoring stability to Ireland's public finances and sustaining this stability in the medium-term period. This is particularly relevant in the light of the increased uncertainty and risks faced by the economy in the wake of the United Kingdom's decision on EU membership. Related to this, I announced in my Budget Statement that a spending review would be undertaken prior to budget 2018. I have consistently reiterated the need to consider the totality of spending when examining budget priorities. Spending reviews previously played an important role in our efforts to reverse unsustainable expenditure growth. The spending review is an integral part of the reformed public expenditure architecture, drawing on the lessons learned from previous spending reviews. The purpose of this review will be to ensure all expenditure will be examined when Government is deciding on its spending priorities. Better information and stronger evaluations should also guide and inform these decisions.

It is my intention, as we move to a different fiscal, economic and political context, to reflect on the design of budgetary reforms introduced in the crisis period. As such, the approach to setting medium-term ceilings remains under consideration and will continue to be examined in parallel to the spending review process that I aim to have completed by next year.

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