Stephen Donnelly (Wicklow, Independent)
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3. To ask the Minister for Public Expenditure and Reform further to a recent submission to him on equality budgeting, if any of the proposals will be incorporated into this year's budget documents; if he will provide a distributional analysis of the proposed budget to be provided to Dáil Éireann on budget day; and if he will make a statement on the matter. [29847/14]

Stephen Donnelly (Wicklow, Independent)
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This question fits in very well with the conversation we have just had. Last October, I joined members of the equality budgeting campaign in making a submission to the Minister, Deputy Noonan, on whether equality budgeting could be incorporated into this country's budgetary process. He suggested that the Minister for Public Expenditure and Reform is responsible for this area. At its simplest, we are looking for an analysis that would answer the question, which has just been discussed by the Minister and Deputy McDonald, of who gets hit the hardest in any proposed budget. Does the Minister believe any of the components of equality budgeting can be incorporated into this year's budgetary process? If the Dáil were to be given a distributional analysis by income, gender and age on budget day, in addition to the budget proposed by the Cabinet, I think it would be a great success because it would allow us to see who is being asked to carry the burden.

Brendan Howlin (Wexford, Labour)
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As I indicated in response to the previous question, the primary objective of recent budgets has been to restore stability to the public finances.  In this context, it has been of vital importance to every member of the Government to spread the burden of adjustment in as fair and as equitable a manner as possible to protect the most vulnerable people in society and stimulate economic growth and jobs-rich recovery. As the Deputy knows, expenditure on health, education and social protection accounts for over 80% of gross voted current expenditure. In implementing the budgetary adjustments required to achieve a successful exit from the troika programme, the Government has sought to protect front-line spending in these areas. We have allocated €19.6 billion to the Department of Social Protection in 2014. In allocating this amount, we have maintained the primary weekly rates of social welfare payments since this Government took office. Similarly, in the area of education, the Government has sought to protect funding in respect of DEIS resources. This funding is provided in addition to the normal funds allocated to tackle educational disadvantage by prioritising the educational needs of children and young people from disadvantaged communities from preschool right through second level education.

As the Deputy is aware, there have been a number of reforms to the budgetary process at national and EU levels. These reforms can assist the Oireachtas and the Deputy in timely consideration of the Government's expenditure plans. In line with the new budgetary timetable, a Revised Estimates Volume was published on 18 December last. This new timetable allows for earlier consideration of the Estimates by each relevant line committee of the Oireachtas.  The Revised Estimates Volume has been expanded so that each Department and office now reports on key performance indicators that are relevant to its area of operation.  The purpose of this is to show what services are being purchased with voted moneys and the impact of these services on Irish citizens and Irish society in general.

Additional information not given on the floor of the House

When making Government decisions on budget matters, the Government is aware of gender equality issues, people experiencing or at risk of poverty or social exclusion and people with disabilities. Expenditure measures and policy proposals are being submitted to my Department as part of the second comprehensive review of expenditure.  The final proposals will be carefully considered by the Government in advance of finalising the 2015 Estimates. On budget day, in relation to distributional analysis, the Government will publish illustrative cases showing the effect of major changes in revenue and certain social welfare payments.

Stephen Donnelly (Wicklow, Independent)
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I have to say, with respect to whoever drafted the Minister's response, that it does not address the question I asked in any way. I asked whether a distributional analysis clarifying who is being asked to bear the highest burden will be provided by the Ministers, Deputies Howlin and Noonan, and their Cabinet colleagues when they come in here on budget day to propose a draft budget to the Dáil for its consideration. I am aware that the Labour Party espouses a budgetary approach that asks those who have the least to carry the least burden. The problem is that the latest analysis, which came months after we had to vote on the budget, suggests that the last few budgets have been regressive and those who have the least have been asked to bear the highest burden. The analysis I am calling for is becoming common practice around the world. It has been successfully implemented in Scotland. I propose that a distributional analysis, setting out how each of the income deciles, each of the two genders and each of the age groups would be affected by the budget if it were to be voted through, should be brought to the Dáil for its consideration. That would put the Dáil and the public in a better position to examine and query the budget proposal being made.

Brendan Howlin (Wexford, Labour)
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I approve, read and alter all answers I deliver here. They are not prepared in some way externally.

I am responsible for all answers I give here.

To answer this particular question, one cannot take one budget in isolation, particularly in times of crisis; nor can one compare the three budgets we have had, which have been crisis budgets designed to rescue us from disaster, to a normal budgetary cycle. That is why I explained to the Deputy that we have changed the whole mechanism for doing budgets by asking each committee, through the new line Department system, to do the work and to call in the Secretaries General well in advance of the budget. They should do so now, before the budget is announced in October, and look at the comprehensive review of expenditure and at all the options. I suggest that the committees drill down into the options and make recommendations. We will provide as much data to the committee system as Deputies require.

Stephen Donnelly (Wicklow, Independent)
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I acknowledge that the budgetary process has significantly improved, certainly in the three years since I have been in the Dáil. However, I ask that the Minister answer the specific question because it would be incredibly useful both for public consideration and for Dáil Éireann's consideration. Of course crisis budgets are different from steady-state budgets. None the less, it is probably more important in a crisis than at any other time, because very tough decisions are being made, to know if particular groups - whether males, females, different age groups or people along the income spectrum - are being asked be asked to carry a disproportionate share of the pain of the correction. Some of the budgets since the crisis have been unbalanced in asking certain groups, particularly lower-income groups and especially sub-groups such as lone parents, to bear an unreasonable share of the correction. It would be an incredibly healthy thing for parliamentary democracy and for the socioeconomic effects of the budgets if we knew on the day the budget was released the proposed distribution of the pain of the correction.

Brendan Howlin (Wexford, Labour)
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I have answered the question a couple of times but I will do so again. One cannot look at each budget, particularly a series of crisis budgets, in isolation. One must look at the cumulative effect of budgets. For example, the analysis done by some looks at all taxation increases as being progressive, even if one has reached the very highest marginal rate of taxation in comparison with any other OECD country - in other words, if one increases taxation, that is progress, and if one reduces expenditure, it is regressive.

We need to have a realistic model to see what levels of taxation are appropriate and what types of taxation are appropriate. That is the sort of drilling down that is required, rather than a crude graph system about which the Deputy is talking. I would have thought that somebody of the calibre of the Deputy would be developing those systems and making the new committee system work, calling in the key officials in line Departments to test those theories and to ensure, for example, that our progressive taxation system, by comparison with any country in the OECD, is maintained.

I disagree with the notion that any category of social welfare recipient was subjected to a disproportionate impact, because we worked with all our might and main to protect social welfare spending, as the Deputy knows. That is a fact. If the Deputy reads any of the commentary from the external overseers in the troika, he will see that they comment on our very high levels of social welfare provision, which we were determined to maintain and which I am proud that we protected.