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

I am here in the Seanad to present the Appropriation Bill 2023. It is a key component of the overall budgetary process. Although it is technical, it is fundamentally important and has to be concluded by both Houses of the Oireachtas before the end of this year.

The Bill has two crucial objectives. The first is to authorise in law the spending, which has taken place throughout the year. The Bill provides this lawful basis in line with the Estimates that have been voted on by the Dáil. These amounts are appropriated for supply services as set out in section 1 and Schedule 1 of the Bill. The amounts included reflect the Revised Estimates and any further Revised Estimates for 2023, voted by the Dáil earlier this year, and all Supplementary Estimates voted by the Dáil over the course of 2023. Overall, this amounts to €79.9 billion in current and in capital spending. The second objective of Bill is to provide a legal basis for public spending to continue into 2024. The enactment of this Bill before the end of December provides the authority for spending in January 2024 until approval of the 2024 Estimates by the Dáil. This authority for the year, as contained in the Central Fund (Permanent Provisions) Act 1965, is based on the amounts provided for in the Appropriation Bill 2023. This is particularly important with regard to the payment of social welfare services and public pay.

Another important element of the Bill relates to capital carryover. Under the rolling year-on-year capital envelopes introduced in budget 2004, Departments may carry unspent capital funding over from the current year to the following year, up to a maximum of 10%. The Bill also provides for this capital carryover from 2023 to 2024. This is designed to enhance the efficiency and effectiveness of the management of capital programmes and projects by Departments and agencies. Section 2 of the Bill provides for the proposed capital carryover into 2024 of more than €530 million, which is 4.2% of total Exchequer capital spending of more than €12.5 billion for this year. Section 2 in the Bill outlines the proposed amounts to be carried over by Vote. The 2024 Revised Estimates volume published this week will include a table listing the amounts to be deferred by subhead for each Vote availing of the capital carryover facility.

In line with usual practice, the Bill also includes a provision to advance funds from the Central Fund to the Paymaster General's supply account to facilitate payments due in the initial days of January. This provision ensures that the funds are in place for salary, pension and social welfare payments at the start of 2024 without creating an overdraft on the supply account. Section 3 of the Bill provides for up to €440 million to be advanced, with this then being repaid to the Central Fund in January. This arises as certain Exchequer liabilities and social welfare payments are due for payment by electronic funds transferred between 1 and 2 January. With the banking system closed on 1 January, funding will need to be in place in departmental bank accounts before the end of the year to meet these liabilities in a timely way. In addition, An Post needs to be pre-funded before the end of the year so it can distribute funds to its network of post offices throughout the country in respect of social welfare payments it makes on an agency basis. These Exchequer decisions form part of the supply services for 2024 and these costs will come under moneys voted in 2024, in respect of which the normal processes will then apply.

Finally, an early signature request for the Appropriation Bill 2023 is being sought. The signed Act is required by the Comptroller and Auditor General for clearance of the end year issues from the Exchequer. Under subsection 1° of section 2 of Article 25 of the Constitution, the President may not sign a Bill earlier than the fifth day after the date on which the Bill is presented to him. However, there is provision in subsection 2° of section 2 of Article 25 whereby, at the request of the Government, with the prior concurrence of Seanad Eireann, the President may sign a Bill on an earlier date than the fifth day mentioned. In view of the urgency of this Bill, I am now seeking the provision in subsection 2° of section 2 of Article 25, and a motion to this effect is in front of Senators. Such an early signature motion has also been sought for the Appropriation Bill in previous years.

While this is a technical piece of legislation and a significant housekeeping arrangement at the end of the year, it is of fundamental importance to the end of the budgetary process. It also ensures we are in a position to meet the commitments in early 2024 to those who depend upon the State or who are paid by the State. For all of those reasons I commend the Bill to the House.