Pearse Doherty (Donegal South West, Sinn Fein)
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320. To ask the Minister for Public Expenditure and Reform the nominal value of the provision for demographic pressures, as referred in the 2015 Stability Programme Update for the years 2016, 2017, 2018, 2019 and 2020. [20646/15]

Brendan Howlin (Wexford, Labour)
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For 2016, the Spring Economic Statement (SES) has outlined that a budgetary package of €1.2 billion to €1.5 billion will deliver compliance with the Expenditure Benchmark. Based on this package being split evenly between tax and expenditure, we are envisaging an increase in expenditure of between €600 million and €750 million in 2016 which will be used to accommodate demographic pressures and invest further in providing quality public services.

For the post-2016 period, the fiscal forecasts in the SES revert to a no policy change position with an annual provision of €300 million included to accommodate demographic pressures arising in sectors such as Social Protection, Health and Education. These fiscal forecasts show that the average annual structural adjustment over the period 2017 to 2020 will amount to 1.1% of GDP, well in excess of the minimum 0.5% of GDP required under the preventive arm of the Stability and Growth Pact. It is the policy of the Government, however, to only make the minimum required annual structural adjustment, meaning that further resources will be available to reduce the burden of taxation on low- and middle-income workers and to enhance public services.

In addition, the ongoing efforts to drive further efficiencies through public service reform and savings arising from reductions due to the improved employment position in certain live register related expenditure can also potentially release funds to deal with demographic demands and for new expenditure policy measures.