Written answers

Tuesday, 19 January 2016

Department of Public Expenditure and Reform

Budget Targets

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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187. To ask the Minister for Public Expenditure and Reform to set out the extent to which the principles of public expenditure monitoring and reform remain part of and a requirement of Government policy; and if he will make a statement on the matter. [2353/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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188. To ask the Minister for Public Expenditure and Reform if Government expenditure remains on target with budgetary projections; and if he will make a statement on the matter. [2354/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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191. To ask the Minister for Public Expenditure and Reform to outline the extent to which specific provisions will be required to trigger area warnings in the event of a departure from good practice in respect of spending or departure from reform principals; and if he will make a statement on the matter. [2357/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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192. To ask the Minister for Public Expenditure and Reform to outline the extent to which he has observed tendencies by Departments or bodies under their aegis to exceed expenditure guidelines; and if he will make a statement on the matter. [2358/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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193. To ask the Minister for Public Expenditure and Reform if particular tendencies or issues relating to over-expenditure by Departments have been brought to his attention; and if he will make a statement on the matter. [2359/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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194. To ask the Minister for Public Expenditure and Reform to outline the extent to which he can incentivise all Departments and public bodies to follow good or best practice in respect of public expenditure and reform; and if he will make a statement on the matter. [2360/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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195. To ask the Minister for Public Expenditure and Reform to outline the savings directly and through the principle of reform achieved by his Department over the past five years; and if he will make a statement on the matter. [2361/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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196. To ask the Minister for Public Expenditure and Reform to set out the extent to which he has achieved the targets set in respect of public expenditure and reform five years ago; if future targets will be met in this regard; and if he will make a statement on the matter. [2362/16]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I propose to take Questions Nos. 187, 188 and 191 to 196, inclusive, together.

My Department has played a key role in ensuring Ireland met or exceeded its key fiscal targets in each year of the EU/IMF programme of financial support resulting in a successful exit from the programme in December 2013. Furthermore, Ireland is on track to exit the corrective arm of the Stability and Growth Pact (SGP) with a general government deficit of close to 1½% of GDP for 2015.

In 2016, Ireland will become subject to the preventive arm of the SGP. Adherence to the rules of the preventive arm will regulate the growth in public expenditure in line with the medium term potential growth rate of the economy, thereby making sure that the level of spending is sustainable and can continue to be supported by the economy.

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. With the move to the preventive arm of the SGP in 2016 it is important that Departments manage expenditure within their allocations as set out in Revised Estimated Volume ('REV') 2016.

In relation to fiscal targets for 2015, end-year Exchequer returns indicate that the General Government Deficit will be close to 1½% of GDP, well below the 2.1% forecast at the time of Budget 2016. Overall voted expenditure for the year has come in below the amount approved by the Dáil by way of original estimate and supplementary estimate.

With 2015 tax revenues exceeding forecast by over €3 billion, the Government was in a position to provide additional funding to a number of Departments by way of supplementary estimate. The additional expenditure represents a responsible approach towards ensuring that public services are adequately funded to meet social and economic objectives both in 2015 and in 2016. The allocation of additional resources should also be viewed in the context of the significant fiscal consolidation implemented in order to return sustainability to the public finances.

Public Service Reform was a key element of the Government's response to the crisis and continues to be an essential part of our strategy for recovery. Significant progress has been made since the publication of the Government's first Public Service Reform Plan in 2011 that has helped improve productivity and deliver benefits across a range of specific areas such as greater openness and transparency, digital government, shared services, procurement reform and property management.

A second Public Service Reform Plan (2014-2016) was published in January 2014. While maintaining an emphasis on efficiency and reducing costs, this Plan puts a particular focus on improved service delivery and achieving better outcomes. The actions set out in the Reform Plan address areas such as: greater use of shared services and innovative approaches to service delivery; increased use of technology and improved engagement with service users; more efficient and effective public procurement; increased accountability and transparency in public decision making; enhanced leadership and performance management; and a continued focus on building the required capacity to deliver reform. A comprehensive Progress Report on the Public Service Reform Plan 2014-2016 was published in March of last year.

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