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

The inflation would be on two different levels. It would relate to supply where, undoubtedly, from a capital point of view, we have seen cost pressure and pressure with tendering and supply chains, which is driven by all the economic developments of which Deputy Durkan will be very aware.

For want of a better phrase, I would not at all use inflation with regard to demand. I do not think that would be an appropriate phrase to use. There has been a heightened need for certain public services, however, both during and after the pandemic, and that has undoubtedly contributed to the pressures that some front-line public services have had to confront.

As I said, overall, if we look at core expenditure and non-core expenditure in the round and look at where we have been in the last number of years, public expenditure has been safely and responsibly managed. It is the reason we are now in surplus and why we are able to increase capital investment at a time in which we need to do so. I will continue to have that approach across the remainder of this year and into next year.

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