Dara Calleary (Mayo, Fianna Fail)
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51. To ask the Minister for Public Expenditure and Reform the status of the programme for Government commitment to introduce a more open budgetary process, less dominated by existing level of service, with small incremental additions each year but focused on major public goals and proven policy performance; and if he will make a statement on the matter. [20386/21]

Dara Calleary (Mayo, Fianna Fail)
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Gabh mo leithscéal, a Leas-Cheann Comhairle. Tá an cheist seo i m'ainm féin. This question is about the commitment in the programme for Government to change the budgetary process to one that is more open, less dominated by existing levels of service and rewards ambition and innovation.

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Deputy for raising this question. The Government's commitment to introducing a more open budgetary process focused on major public goals and proven policy performance is aligned with the ongoing process of budgetary reform that seeks to increase the focus on how public money is used to provide services, and on the impact these services have on people’s lives. This commitment is also reflected in the approach towards the review of the national development plan, NDP. My Department recently published the Phase 1 Report - Review of the National Development Plan following a detailed process of engagement. This report, which outlines the various strands of the review process, provides an evidence base to inform capital investment decisions to support economic, social, environmental and cultural development throughout the country.

Another recent element of the reform process relates to the commitment to develop a set of well-being indices. The Department of the Taoiseach is leading an interdepartmental working group, co-sponsored by the Department of Finance and my Department, which is focused on developing an initial well-being framework. This framework will create a well-rounded view of how Irish society is faring.

Furthermore, it is intended that the framework will be utilised in a systematic way across Government policymaking in setting budgetary priorities, evaluating programmes and reporting progress as a complement to existing economic measurement tools. This work is the most recent in a series of initiatives that seek to increase the capacity of the Civil Service to undertake evidence-informed policy work through the Irish Government Economic and Evaluation Service; increase the focus on performance through the performance budgeting initiative; critically assess key policies and expenditure programmes and support evidence-informed policymaking through the spending review process; provide an opportunity for engagement through a whole-of-year budgetary process, including the summer economic statement, the mid-year expenditure report; and engagement with a broad range of stakeholders at the national economic dialogue.

Dara Calleary (Mayo, Fianna Fail)
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I welcome the changes the Minister is beginning to introduce in the system. The emphasis on existing service levels does not sufficiently acknowledge the need for innovation and change. I particularly welcome the Minister's ongoing commitment towards regional balance. We need some regional imbalance where extra expenditure is given to the regions. Many Departments have introduced programme budgeting but that is yet to happen in the Department of Health. In the context of the appointment of Robert Watt to the position of Secretary General in that Department and given Mr. Watt's background, is it the Minister's intention to see the introduction of programme budgeting in the Department of Health and greater alignment between the budget process in that Department, the Minister's Department and the HSE service plan?

Michael McGrath (Cork South Central, Fianna Fail)
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I will make a few points.

I welcome the Deputy's comments regarding the emphasis on existing levels of service. Of course, it is always the case that ministerial colleagues will seek to add to the existing budget with new ideas and new policy initiatives drawn from the programme for Government, but there is also a need for an emphasis on reform. We must always be asking ourselves whether we are spending our resources wisely, whether we are doing it in a manner that is getting the best outcome and whether we are ensuring there is value for money in everything we do. Those are vital questions.

On the issue of regional balance, it is important to state that under Project Ireland 2040 the vast majority of growth is pencilled in for outside the greater Dublin area. In fact, 75% of population growth is to take place outside Dublin. We need to make sure that the new national development plan, which is to be agreed during the summer, supports that.

I will address the Deputy's point relating to the Department of Health in my next contribution.

Dara Calleary (Mayo, Fianna Fail)
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I thank the Minister. I emphasise that in order to achieve those very ambitious levels of growth, we need similarly ambitious levels of investment. We will not get that growth without investment to drive it. I will give the Minister the rest of my time to deal with the Department of Health issue and programme budgeting.

Michael McGrath (Cork South Central, Fianna Fail)
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On the issue of capital investment, as the Deputy is aware, in the current year we have a budget of €10.8 billion, which is the largest in the history of the State. Learning from the previous crisis and taking account of the different conditions at this time, we will protect the public capital programme. That is a really important commitment from Government to which I look forward to giving effect as part of the review of the national development plan.

On the issue of the Department of Health and the HSE, they have a budget in the overall Health Vote of €22 billion in the current year. While it is true to state that almost €2 billion of that is specifically for Covid, the key change in the context of the budget for 2021 is that we are now making the step-change towards investing in Sláintecare. Covid has underlined but not created the need for a permanent improvement in the capacity of the public health system. I want health budgeting to be very much performance-based. I want outputs. When I sat down last year with the Minister to negotiate the budget, I was very anxious to get specifics, such as the number of extra beds we would get in the acute hospital system, the number of extra critical care beds we would get and the staff we would recruit in the areas we identifiably have a deficit. For me, it is about outcomes and performance and I will certainly be adopting the same approach when it comes to negotiating health budgets in the future.