Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

8. To ask the Minister for Public Expenditure and Reform the extent to which he expects his Department to continue to meet deadlines, and to continue to play an important part in economic recovery, with particular reference to the need to ensure stability and sustainable economic growth across the country; and if he will make a statement on the matter. [40575/15]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

The Deputy's question highlights the pivotal role played by my Department in supporting the delivery of Government priorities such as securing fiscal stability, sustainable economic growth and social progress.

My Department has played a key role in ensuring that Ireland continues to meet its key fiscal targets. As a result of the fiscal policies of this Government and the efforts of the Irish people Ireland is due to exit the corrective arm of the Stability and Growth Pact (SGP) at the end of this year and will transition to the preventive arm of the SGP. 

Sustainable fiscal policy will be anchored in the future by adherence to the new fiscal rules which require that Ireland makes the appropriate adjustment each year towards achieving its medium term budgetary objective (MTO), a balanced budget in structural terms. 

As Ireland is subject to the corrective arm of the SGP in 2015, economic growth and greater than expected tax receipts have allowed the Government to improve services in a number of key areas while remaining firmly within our fiscal parameters. The extra funding of €1.6 billion for gross voted expenditure in 2015 has allowed Government to target additional expenditure in areas experiencing increased demand and to growth enhancing capital expenditure. 

The Capital Investment Framework published by my Department set out a €27 billion multi-annual Exchequer Capital Investment Plan. This Plan is supported by a programme of capital investment in the wider State sector. This investment over the period 2016 to 2021 will help to lay the foundations for continued growth. 

The Capital Plan reflects the Government's commitment to supporting strong and sustainable economic growth and raising welfare and living standards. The Plan identified critical areas for investment over the 2016-2021 period with an allocation of €3 bn to support the Social Housing Strategy 2020 and a further €3 bn in support of health to deliver major infrastructural projects such as the new National Children's Hospital, which will be the largest health infrastructure project ever undertaken in Ireland. 

As the economy continues to recover we will look to build upon the significant and wide-ranging civil and public service reforms implemented over recent years which have added efficiency and effectiveness to the way in which our public services are delivered and must continue to do so.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

10. To ask the Minister for Public Expenditure and Reform the extent to which he expects the targets set by his Department to be met by all Government Departments in the course of the coming year; if he is satisfied that prudent relaxation of expenditure curtailments will drive economic progress, without creating inflationary tendencies, or threatening competitiveness; and if he will make a statement on the matter. [40574/15]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

The Deputy will recognise the success achieved over the term of the present Government in meeting its key fiscal targets each year.  As a result Ireland is on course to exit the Excessive Deficit Procedure at the end of 2015 with a forecast General Government Deficit of 2.1% for the year. 

In implementing the expenditure reductions required to return sustainability to the public finances, the Government's priority has been to protect key public services and social supports to the greatest extent possible.  Budget 2016 was, therefore, framed in a manner which was consistent, not only with fiscal responsibility, but also with ensuring careful allocation and investment of public money in prudent ways to ensure the maximum benefit to society, with over 80% of all current expenditure allocated to the areas of Health, Social Protection and Education.

Managing the delivery of public services within Budgetary allocations is a key responsibility of each Minister and their Department, and important measures are in place to help ensure that these budgetary targets continue to be met.  My Department is in regular communication with all Departments and Offices to ensure that expenditure is being managed within the overall fiscal parameters. The drawdown of funds from the Exchequer is monitored against the published expenditure profiles.  There is regular reporting to Government on these matters, and information is published monthly, as part of the Exchequer Statement.

The multi-annual voted expenditure ceilings in place secure greater transparency in the allocation of resources across Government Departments over a three year horizon.  They also facilitate the work of the Oireachtas in engaging with Ministers and their Departments on their spending priorities.

The progress achieved in restoring the public finances is evidenced by the fact that from the beginning of next year, Ireland will be subject to the requirements set out under the preventive arm of the Stability and Growth Pact.  In that context it will be essential that Departments prudently manage delivery of services within their voted allocations maintaining our hard-won fiscal stability and helping to support competitiveness, low inflation and economic progress.