Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Deputy for raising this question. The draft stability programme update, SPU, 2022, published on 13 April, outlines the latest fiscal and economic projections for 2022. The SPU outlines core expenditure of €80.1 billion for 2022. With non-core expenditure of €7.5 billion, including in respect of Covid funding and the Brexit adjustment reserve, this gives an overall Government expenditure ceiling of €87.6 billion. This compares to overall gross voted expenditure of almost €87.5 billion in 2021, inclusive of capital carried over. While in year-on-year terms expenditure is broadly flat, there is a significant reduction in Covid expenditure that is offset by an increase in core expenditure. As outlined in the SPU, there is an increase of €2 billion in capital spending this year compared to last year.

The Government expenditure ceiling set out in the SPU is in line with that set out in the Revised Estimates 2022. The overall gross expenditure amount in the Revised Estimates was inclusive of an unallocated Covid-19 contingency reserve of €3.9 billion. At this stage, taking into account the increased supports introduced in response to the December wave of the virus, and additional funding required for the one-off cost-of-living measures introduced in recent months, about €1.5 billion of this reserve is now committed. In addition, there will be additional Covid-related expenditure that will need to be met from this reserve later in the year, in particular, as we enter the winter period. This reserve funding will also need to be utilised for the provision of supports to refugees arriving from Ukraine. The costs relating to refugees will continue to be assessed by my Department, including in the context of the summer economic statement, to ascertain the extent to which these costs can be met within existing departmental and overall allocations taking into account any emerging underspends.

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