Written answers
Friday, 16 September 2016
Department of Finance
Fiscal Policy
Pearse Doherty (Donegal, Sinn Fein)
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295. To ask the Minister for Finance the way the savings of €140 million anticipated by the Department of Health in the calendar year 2017 under the new framework agreement with the Irish Pharmaceutical Healthcare Association will affect the net fiscal space of €1 billion for 2017; and if he will make a statement on the matter. [25608/16]
Michael Noonan (Limerick City, Fine Gael)
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The Summer Economic Statement recognised that the implementation of the budgetary measures to return the public finances to a sustainable level requires the efforts of all public service bodies to seek savings and pursue efficiencies.
It is consistent with the principle of the application of the expenditure benchmark on a fair and transparent basis across the whole of general government, as outlined in the Medium Term Budgetary Framework, that savings generated by sub-sectors/entities should stay with them and can be used to fund additional expenditure while staying within the relevant Ministerial Expenditure Ceiling. This principle, which incentivises the identification of efficiencies and savings, applies in this case.
Consequently any savings arising under the new framework agreement would not impact the estimate of net fiscal space but would rather be available for delivery of services by the Department of Health.
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