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

The Estimates process and the determination of expenditure ceilings now takes place as part of a whole-of-year budgetary cycle. The summer economic statement, SES, sets out the overall fiscal strategy for the approaching budget. The pre-budget expenditure position is provided for in the mid-year expenditure report. This sets the baseline for examination of budgetary priorities by the Government and the Oireachtas. Following detailed consideration, expenditure ceilings are published in the budget day expenditure report and are informed by a medium-term perspective on certain expenditure pressures and developments.

The expenditure report of 2019 sets out the revised baseline for current expenditure out to 2021. The ceilings also include an amount of unallocated resources in 2020 and 2021 based on the budgetary projections at budget time. These can be utilised to meet the carryover impact of budget 2019 measures or for new expenditure measures. 

The management of public expenditure within the agreed voted allocations is a key responsibility of each Minister and Department. However, where due to expenditure overruns or policy decisions the need arises for additional expenditure that can be accommodated within the overall budgetary parameters, any increase in the ceiling requires Government approval. Where such approval is provided the associated Supplementary Estimate is then presented to Dáil Éireann for detailed consideration and approval.

Against this overall background, the publication from the Parliamentary Budget Office is a helpful addition to the stock of analysis and professional commentary that can inform the ongoing process of our budgetary work.

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