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

The transmission mechanism for changes in the State will be what happens to our rate of economic growth. It has already been revised by the Minister for Finance and, as part of budget 2017, will be under continual review. The Minister will confirm the latest figures in his summer economic statement next year. He will give an indication of future rates of growth in the economy and the impact on expenditure, concluding with next year's expenditure report. In this way we will look at the effect on expenditure ceilings. We need to take care to recognise that it is still up to governments and policy makers to set their priorities each year and I have raised this issue with my Department. Expenditure ceilings are a very important part of how we plan future growth, but I do not believe they can be at the expense of the Minister for Finance, or any Minister of the day, having some latitude in how they spend, if only to respond to the issues the Deputy has raised. The key aspect is to meet the requirements imposed on us by the fiscal rules and the commitments we, as a state, have given on deficits and debt, the main components of how we look at the issue of budgetary discipline. In any given year, on budget day, a Government Minister should still have discretion in how he or she allocates funding and in terms of any new initiative he or she wishes to instigate, as long as he or she insides an affordable budgetary framework.

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