Michael McGrath (Cork South Central, Fianna Fail)
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Question 54: To ask the Minister for Finance the elements of the budget process which will no longer be under his control [5199/11]

Michael Noonan (Limerick City, Fine Gael)
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It is the Government's intention that the Department of Finance will be reconfigured as two departments – a restructured Department of Finance which will, broadly speaking, encompass two of the existing divisions: Budget, Taxation and Economic Division and Financial Services Division, and the Department of Public Expenditure and Reform which will also comprise, in broad terms, two existing divisions, one dealing with Public Service Management and Development and the other, Sectoral Policy Division, dealing with public expenditure. The latter Department will have responsibility for Government policy relating to public sector reform. A range of corporate support services will continue to be shared between the two Departments.

The two Departments will be legally separate entities with distinct reporting relationships to each Minister. Legislation is currently being prepared to give effect to this. Both Ministers are full Cabinet Ministers with full Cabinet responsibilities.

As I have indicated previously, I will be working very closely with the Minister for Public Expenditure and Reform, both on an ongoing bilateral basis and in the context of the Government Economic Management Council.

While the operational and organisational details of the transfer of functions are currently being finalised, the development of policy on public expenditure is and will continue to be a major component of overall budgetary strategy. Within the revised configuration, the Budget process itself will remain predominantly under the direction of the Department of Finance, with specific tasks assigned between the two Departments as appropriate.

A high degree of liaison will continue between the officials of our respective Departments to ensure that the budget process continues to be managed smoothly and efficiently, taking account of this Government's budgetary reform agenda.