Written answers

Tuesday, 24 May 2016

Department of Public Expenditure and Reform

Capital Expenditure Programme

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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359. To ask the Minister for Public Expenditure and Reform further to Parliamentary Question No. 202 of 17 May 2016 the impact of the €4 billion cumulative capital spend in the gross and net fiscal space; and the amount of projected spend of this €4 billion cumulative for each of the years from 2017 to 2021 in tabular form. [11603/16]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The Capital Plan published by my Department in September 2015, set out the Government's €42 billion framework for infrastructure investment over the period 2016 to 2021. The Plan combines direct investment by the Exchequer of €27 billion, a third phase of PPP investments of about €500 million and State-owned sector investment of around €14½ billion.

As set out in the Programme for a Partnership Government we will protect this existing €42 billion capital investment plan and, in light of the change in the Medium Term Objective for Ireland, set out in the April 2016 Stability Programme Update published by the Department of Finance, from a structural balance of 0% of GDP to -0.5% of GDP, the Government will seek Oireachtas approval for a cumulative, additional €4 billion in Exchequer capital investment up to 2021.

Table A.9 in the Budget 2016 book, published by the Department of Finance, set out the estimated impact under the Expenditure Benchmark of the voted capital expenditure increases included in the Capital Plan.  As the Deputy will be aware, the Government is committed to carrying out a mid-term review of the Capital Plan which will review the priorities and timelines set out in the Plan in light of economic circumstances.  The proposed allocation of an additional €4 billion in Exchequer capital investment will be considered further as part of that review and proposals will be developed for consideration by the Oireachtas.  The impact on fiscal space of the additional expenditure can only be fully assessed when the composition in terms of investment in new capital formation and timing of the expenditure is detailed following completion of this mid-term review.

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