Written answers

Tuesday, 31 May 2016

Department of Public Expenditure and Reform

Public Expenditure Policy

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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567. To ask the Minister for Public Expenditure and Reform if he expects public expenditure constraints and reform policies, effective in the context of economic recovery, to be used as a basis for prudent economic development in the future; if he expects to implement innovation in this regard in the future to maximise economic benefit; and if he will make a statement on the matter. [13616/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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568. To ask the Minister for Public Expenditure and Reform if all Departments and their subordinate bodies have met the targets set down by his Department in the context of public expenditure and reform; and if he will make a statement on the matter. [13617/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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570. To ask the Minister for Public Expenditure and Reform if he remains satisfied regarding the adequacy of the budget for each Department to meet its requirements over the next twelve months; if any particular measures are required to address specific issues; and if he will make a statement on the matter. [13619/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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572. To ask the Minister for Public Expenditure and Reform if he remains satisfied that targets in respect of savings and public expenditure reform will continue to be met in the context of economic recovery; if he has identified particular areas of conflict in this regard; if he remains satisfied that economic recovery and retention of public expenditure objectives are not mutually exclusive; and if he will make a statement on the matter. [13621/16]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 567, 568, 570 and 572 together.

The key focus of fiscal policy over the last number of years has been to reduce the General Government Deficit in line with the targets set under the Excessive Deficit Procedure. The management of public expenditure by Government Departments has played an important role in ensuring that these key fiscal targets have been achieved. The EU Commission has recommended that Ireland has met the requirements to exit the corrective arm of the Stability and Growth Pact at the end of 2015.

As the Deputy suggests, Public Service Reform was a key element of the Government's response to the crisis and the strategy for recovery. The reforms implemented over the past five years enabled us to maintain and improve public services in the face of the necessary reduction in staff numbers and budgets, at a time of increased demand for public services.

The Programme for Government recognises that economic and social progress go hand in hand. Only a strong economy supporting people at work can pay for the services needed to create a fair society. The Programme for Government, therefore, sets out a clear strategy for increasing spending in a sustainable way built on stable revenues.

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. This second Annual Progress Report on the Public Service Reform Plan 2014-16 published in April 2016 sets out the significant progress that has been made over the last year in implementing the cross-cutting reform actions set out in the Plan

As the Deputy is aware, 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 end-April Exchequer returns show that most Departments continue to manage expenditure within profile. However, these returns provide some indications of areas where there may be some pressures. As outlined in the analysis of Gross Voted Expenditure published with the Exchequer Returns, Health gross current spending was over profile by €78 million (1.7%) at the end of April.

As outlined in the 2016 Stability Programme Update (SPU) it was estimated at that time, on the technical no policy change basis on which the SPU was prepared, that over the course of the year, voted spending pressures amounting to c. ¼ per cent of GDP could materialise. Given the potential upside to the revenue projections it is envisaged that additional spending of this level can be accommodated within the fiscal rules.

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