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

Government expenditure policy is framed around the medium-term economic strategy which has two objectives, to ensure the long-term sustainability of core expenditure growth and to ensure that the investment in expenditure delivers improvement in public services and infrastructure. As outlined in the stability programme update published last week, the Government is providing investment of €97 billion across the public service to protect living standards, improve public services and safeguard our future through enhanced capital investment. Managing the delivery of such public services and public capital investment within allocations is the responsibility of each Minister and his or her Department. My officials monitor overall expenditure in line with agreed Government objectives and engage with the Government and with Departments on their variances and assess any building pressures.

A number of processes and procedures are in place. We monitor the drawdown of funds against published profiles; we look at key data and information on voted expenditure, which is published every month; we look at quarterly reporting to the Government on the main spending of Departments, and there is regular engagement between all Departments and my officials. Total gross expenditure to the end of quarter 1 was €22.8 billion, which was 14.9% up versus a year ago. This was €275 million or 1.3% above profile. The current expenditure overrun was moderated by an underspend in capital expenditure of €273 million.

The most influential factor in the current expenditure variance versus profile was with regard to health expenditure, where expenditure was running at 7% above planned levels, as was laid out in the monthly publications. I continue to work with all Departments in regard to spending. We have made progress in recent months in bringing spending into line with where profile spending is expected to be. The Deputy will see some of that progress continue in the Exchequer returns that will be published in the coming days.

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