Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

I propose to take Questions Nos. 18 and 19 together.

I thank Deputy Durkan. I apologise on behalf of the Minister, Deputy Michael McGrath, who has had to leave for a Cabinet sub-committee meeting. He asked me to take these questions on his behalf.

Managing expenditure within allocations is the responsibility of every Department and its Minister. Significant additional expenditure has been allocated to a number of Departments over the past number of months. While we find ourselves in an unprecedented situation due to Covid-19, all of the usual measures remain in place in terms of the sanctioning and management of expenditure.

The Revised Estimates Volume, REV, for 2020, which was published in December 2019, set out an overall allocation of €70.4 billion in gross voted expenditure for the year. Taking into account the additional expenditure agreed by the Dáil for Covid-19 measures, the revised Government expenditure ceiling now stands at €79.7 billion. This includes an additional €6.8 billion for the Department of Employment Affairs and Social Protection, nearly €2 billion for the Department of Health and €483 million for the Department of Business, Enterprise and Innovation. In addition, further measures have been announced by the Government in response to the Covid-19 crisis, including the decision to extend the pandemic unemployment payment and the temporary wage subsidy scheme to August. At this stage, it is estimated that, based on decisions to the end of June, the overall increase relative to the allocations set out in REV 2020 arising from Covid-19 is almost €12 billion. In addition, supports are to be announced as part of the July stimulus plan and further spending may be required to support key sectors as the year progresses.

A number of reconfigurations of Departments are in progress. When work on all transfers of functions and related allocations is complete, restated Estimates will be presented to the Dáil reflecting the new departmental structures and their allocations. These Estimates will reflect decisions on additional funding to respond to Covid-19, including that set out in the July stimulus. Over the coming months, it will be important that Departments manage within the allocations set out in these Estimates.

In conjunction with budget 2021, a national economic plan will be published setting out the Government's long-term approach to restoring employment and outlining how we will secure our public finances. As the economy returns to growth and employment is restored, it is important that the deficit be reduced year on year to underpin the sustainability of the finances. To achieve this aim, a sustainable medium-term expenditure framework will be pursued that provides a clear pathway back to a balanced budget. Throughout this process, the Government will prioritise policy actions that protect the most vulnerable and put in place new measures for economic decision making that reflect the welfare and quality of life of those living in Ireland.

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