Michael D Higgins (Galway West, Labour)
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Question 32: To ask the Minister for Finance the specific measures in view of the publication of the document "The Public Finances in EMU — 2007" that have been taken to improve the overall quality of budgetary procedures, particularly in relation to performance budgeting, the use of budgetary reserves, the use of prudent economic assumptions and budget transparency; and if he will make a statement on the matter. [31349/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Budget documentation is published each year and updates on the Exchequer finances are published monthly by my Department. The economic assumptions which underpin the Budget are based on the best information available at Budget time. The Budget book also contains a comparison of the Department's main macro-economic forecasts with those of other key institutions.

As regards performance budgeting, Ireland has made significant progress in this area over recent years with a view to moving beyond the traditional narrow focus on financial inputs, in favour of accountability for what is being achieved and delivered with public moneys. In this regard, the introduction of Annual Output Statements in 2007 represents a major step forward. The Output Statements set out the key public service targets that are to be delivered over the year ahead, and they are considered by the relevant Dáil Select Committee as part of their consideration of the annual Estimate allocations. From this year, the Output Statements also include an account of progress in achieving the output targets for the previous year. The comprehensive Value-for-Money (VFM) framework that has been put in place over recent years, including evaluations of programmes of expenditure under the Value for Money and Policy Review initiative and the establishment of a dedicated Central Expenditure Evaluation Unit in the Department of Finance to promote best practice in this area, also reflects the Government's commitment to ensuring that performance and delivery are integral to Ireland's budgeting and accountability infrastructure.

In its recent review of the Irish public service, Towards an Integrated Public Service, the OECD commented favourably on Ireland's progress to date in developing and implementing a performance-focused agenda, and it put forward a number of recommendations for further improvement. These recommendations are currently being considered.