Written answers

Tuesday, 22 November 2005

Department of Finance

Departmental Expenditure

10:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 353: To ask the Minister for Finance the permitted carry-over of capital spending in 2004 and expected in 2005; the size of the underspend in 2003, 2004 and to date in 2005 in total; and the proportion which could be carried forward under current rules. [35760/05]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The carry-over of unspent capital from 2004 into 2005 by Departments and offices was €237 million and the current estimate for capital carry-over into 2006 from 2005, as set out in the recently published Abridged Estimates Volume, AEV, is €286 million.

The total capital underspend in 2003 and 2004 was €165 million and €365 million, equivalent to 3% and 6.6% of total capital allocation respectively. The latest forecast capital underspend from Departments for 2005 is approximately €382 million or 6.3% of the 2005 capital allocation.

Under the rolling multi-annual capital envelopes, Departments are allowed to carry over to the following year unspent capital up to a limit of 10% of their gross voted capital allocation for the current year. The amount of capital carryover by Vote is determined definitively in the annual Appropriation Act.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 354: To ask the Minister for Finance the details of the proposed expenditure review initiative to be completed in 2005, 2006 and in 2007; and the new procedures which will apply in relation to this process. [35761/05]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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Concerning reviews on hand in 2005, I am informed by Departments that 54 reviews have either been completed or are under way in 2005. I will be bringing proposals to Government shortly for approval of topics for review in 2006-08. This will include provision for handling any carry-over reviews from 2005. I will also be setting out in my proposals to Government my plans for improving the operation of the expenditure review initiative. A number of changes have already been introduced to the expenditure review initiative process under the current round. These include the establishment of an expenditure reviewers network, the provision of training in expenditure review, the strengthening of the terms of reference and the introduction of external quality assessment of reviews. Departments have also been requested to implement the recommendations of the expenditure review initiative first formal report of October 2004 to the Minister for Finance by the expenditure review central steering committee.

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