Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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89. To ask the Minister for Health if he will detail the current health budget deficit; the expectation of the final figure for this year's deficit; the steps he is taking to ensure that this deficit will be met in 2014; the services that the current Government might restrict if the health budget does not increase sufficiently for next year in line with the existing increase and envisioned increased use of services; and if he will make a statement on the matter. [36542/14]

Leo Varadkar (Dublin West, Fine Gael)
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In Vote terms the Health Service Executive Vote 39 is showing a net current deficit of €260m against profile at the end of September. However, receipts from the UK which were profiled for November were actually received in September; when this is excluded, a net current deficit of €432m emerges.

In income and expenditure terms the HSE is reporting a year to date net expenditure of €7.039 billion to the end of July against a budget of €6.754 billion, leading to a variance of €285 million. The acute hospital sector accounts for €160m or 57% of the overall deficit. Employment agency costs were €194m, up €63m on last year, a significant element of which was incurred in acute hospital services. The Primary Care Division had an overall deficit of €54m with local demand-led schemes a key area experiencing excess expenditure.

Undoubtedly, 2014 is proving to be a financially challenging year for the health services. While the budgetary targets this year are particularly constrained, it is important to recognise that very demanding financial and resource constraints have applied in each of the last number of years as a direct consequence of the crisis in the public finances. The cumulative impact of this unprecedented period of financial and resource restraint has resulted in reductions in the health service budget of the order of €1.5 billion since 2008 with numbers employed reduced by over 14,000 over this period.

These challenges come at a time when the demand for health services is increasing each year which, in turn, is driving costs upwards. Despite these resource reductions the HSE has managed to support growing demand for its services arising from such factors as population growth, increased levels of chronic disease, the ageing of the population, increased demand for prescription drugs, and new costly medical technologies and treatments.

Currently it is anticipated that a supplementary estimate above €500 million will be required to support services in 2014. This is based on costs to the end of July and takes account of the HSE’s best estimate of likely expenditure to year end, mitigated by ongoing cost containment plans and income generation. It is important to stress that, as with any forecast, there is some degree of uncertainty particularly given the scale of the overall HSE cost base, the complexity of the services and the lack of a national financial system. This forecast deficit excludes any overrun on the State Claims Agency.

The HSE continues to work closely with my Department to mitigate the projected deficit to the greatest degree possible.

The level of funding available for the health budget and the extent of the savings required in the health sector are being considered as part of the estimates and budgetary process for 2015 which is currently underway. Pending completion of the national estimates, budgetary and service planning process for 2015 it is not possible to predict the service levels to be provided next year.