Bernard Durkan (Kildare North, Fine Gael)
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7. To ask the Minister for Public Expenditure and Reform the extent to which budgetary projections in respect of public expenditure continue to remain on target and in line with expectations; if any specific areas have exceeded expectations or fallen behind; the implications in the event of any such movement; and if he will make a statement on the matter. [16727/14]

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Question No. 7 is also in the name of Deputy Durkan. I suggest he buy a lottery ticket.

Bernard Durkan (Kildare North, Fine Gael)
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This question is similar to my previous question. I seek information on the performance of individual Departments or their subsidiaries, with particular reference to the need to keep in mind that some Departments are demand- or consumer-driven.

To what extent does the Minister envisage those Departments being able to cope within budget at the moment and in the future?

Brendan Howlin (Wexford, Labour)
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The Deputy asked a very profound question. Gross voted expenditure has been reduced from its peak of €63.1 billion in 2009 to just under €53 billion in 2014. This represents a reduction of 16% between 2009 and 2014 and will help us meet our general Government deficit target of 4.8%, which is still very large, for 2014. The radical improvement in the sustainability of the public finances has helped to achieve our exit from the EU-IMF programme of financial assistance.

Managing the delivery of public services within agreed budgetary allocations is a key responsibility of each Minister and Department and several measures are in place to help ensure that these set targets continue to be met. My Department is in regular communication with all Departments and offices to ensure that expenditure is being managed within agreed allocations and we monitor their draw down of funds from the Exchequer on a monthly basis. Where necessary, my Department also meets line Departments to review financial and budgetary management. I report to Government regularly on spending trends and we publish information each month as part of the Exchequer statement.

The end of December Exchequer returns outlined that voted expenditure was well within budget for 2013. Overall net voted expenditure of €43.1 billion was €300 million or 0.7% below the budget profile for 2013. This represented a decrease of almost €1.9 billion or 4.2% when compared to 2012 so the trajectory is being well managed. Any overruns in any individual Department that is demand-led is more than compensated by savings we can allocate that Department from other Departments. These figures demonstrate the ongoing effective management of expenditure to ensure that Government can achieve its fiscal objectives while meeting increased demands for delivery of good quality public services for citizens is under way.

Additional information not given on the floor of the House.

This effective management and delivery of savings is continuing in 2014 with the latest data on expenditure to end-March 2014 indicating that overall net voted expenditure was €261 million or 2.5% behind profile, a year-on-year decrease of €631 million or 5.8%. In gross terms voted expenditure was €164 million or 1.2% behind profile and was €452 million or 5.7% lower than the same period last year. The reduction in expenditure compared with the first quarter in 2013 illustrates that

Departments are working to deliver the savings measures outlined in budget 2014 and that the Government is firmly committed to meeting our deficit targets.

Bernard Durkan (Kildare North, Fine Gael)
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I thank the Minister for his comprehensive reply. To what extent does he see Ireland's performance remaining on target following its exit from the bailout? To what extent will that new scenario impact in a positive or negative way on the Minister's budgetary projections and his ability to achieve similar savings in the future?

Brendan Howlin (Wexford, Labour)
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Again, the Deputy asks a very good question. There is a view that having gone through such a painful and difficult period of expenditure, we can somehow take our foot off the pedal. Even if we achieve all our targets, and we are determined we will, the fact that our deficit is expected to be of the order of 4.8% this year shows that we are still not out of the woods. We need to get to our agreed target of a deficit below 3% of GDP next year. There are positive signs. The Deputy saw the first quarter figures in terms of taxes which are above profile. This shows a healthy and growing economy, particularly the employment figures. Both employment and employment revenues such as PRSI indicate a recovery. However, we cannot slacken on discipline in terms of ensuring that the profiles we have set out are maintained. I know all my colleagues around the Cabinet table understand that fully and will maintain the discipline that has brought us to the good place we are now in.

Bernard Durkan (Kildare North, Fine Gael)
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Given the Minister's exchange of views with his EU colleagues, how does this country's credibility rating internationally fare? To what extent does he see further improvements in the various agencies in their appraisal of this country arising from the performance to date?

Brendan Howlin (Wexford, Labour)
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We have made remarkable progress on almost every level in respect of the external overview of this country. Even the most jaundiced of analysts in the rating agencies have a more positive view of Ireland, which has helped us in terms of the bond yields for our ten-year debt. When we came into Government, Ireland was basically rated as junk and we could not sell our bonds. There was no point in putting them out because the interest rate demanded would have been so punitive. The most recent bond sale indicated that we can now sell ten-year bonds at in or around 3% and marginally below that on the secondary market on occasions. This means that people have long-term confidence in our capacity as an economy to pay back those loans and as a result, they are not demanding punitive interest rates.

There is a very positive view of Ireland in the European Commission and the Council of Ministers, which helps in terms of inward investment. The flow of foreign direct investment is very strong and we hope this will continue. We have a transformation in the external perception of Ireland as a country that is determined to recover and build a new economic platform on the basis of goods and services that people want to buy and sell. It is a good place in which to invest.