Written answers
Thursday, 20 October 2016
Department of Public Expenditure and Reform
Capital Expenditure Programme
Michael McGrath (Cork South Central, Fianna Fail)
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163. To ask the Minister for Public Expenditure and Reform the nominal amount of capital expenditure, the capital expenditure as a percentage of GDP for each year since 2000 to 2015 and to include the estimates for 2017-2021, in tabular form; and if he will make a statement on the matter. [31353/16]
Paschal Donohoe (Dublin Central, Fine Gael)
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The information requested by the Deputy is set out in the following table :-
| Year | Gross Voted Capital Expenditure €,000 | Capital as a % of GDP |
|---|---|---|
| 2000 | 3,930,452 | 3.6% |
| 2001 | 4,975,673 | 4.1% |
| 2002 | 5,583,873 | 4.1% |
| 2003 | 5,360,805 | 3.7% |
| 2004 | 5,204,177 | 3.3% |
| 2005 | 5,882,879 | 3.5% |
| 2006 | 6,661,045 | 3.6% |
| 2007 | 7,819,137 | 4.0% |
| 2008 | 9,011,084 | 4.8% |
| 2009 | 7,332,611 | 4.3% |
| 2010 | 6,384,671 | 3.8% |
| 2011 | 4,514,782 | 2.6% |
| 2012 | 3,808,786 | 2.2% |
| 2013 | 3,386,884 | 1.9% |
| 2014 | 3,597,075 | 1.9% |
| 2015* | 3,718,997 | 1.5% |
| 2016** | 4,167,338 | 1.6% |
| 2017 (f) | 4,535,112 | 1.6% |
| 2018 (f) | 5,295,000 | 1.8% |
| 2019 (f) | 6,070,000 | 2.0% |
| 2020 (f) | 6,675,000 | 2.1% |
| 2021 (f) | 7,285,000 | 2.2% |
* 2015 Provisional Outturn
** 2016 Revised Estimate
In assessing both the level of and the trend in Gross Voted Capital Expenditure as a percentage of GDP over the period as set out in the table, I would draw the Deputy's attention to the recent report of the Dáil Committee on Budgetary Oversight - of which the Deputy is a member - which highlighted the limitations in key macroeconomic variables to accurately reflect developments in the economy in light of the scale of the CSO's revision to GDP for 2015 in the National Accounts.
The Budget Oversight Committee also highlighted in its report the case for greater public capital investment. As set out in the summary response to the Committee's report published last week on the Budget 2017 website , the Government is committed to increasing investment spending in a managed and sustainable manner that ensures value-for money from increased public investment. The Programme for a Partnership Government makes clear that the existing Capital Plan is the starting point for increased investment in priority areas over the coming period. The Mid-Year Expenditure Report set out the cumulative total additional capital of €5.14 billion over and above that allocated in the Capital Plan for the period to 2021. The review of the Capital Plan will assess how additional funding is to be allocated across Departments to meet investment priorities.
Finally, in light of the level and GDP share of capital spending in the period to 2009 set out in the table, I would also draw the Deputy's attention to Figure 6 on page 6 of the Expenditure Report which highlights that gross voted expenditure grew by 57 per cent, 26 per cent and 38 per cent over the three three-year intervals 1999-2002, 2002-2005 and 2005-2008 respectively. This highlights the extent to which growth in public expenditure growth was unsustainable over that period, culminating in the fiscal collapse that followed. This draws attention to the importance of ensuring, in line with the commitment in the Programme for Partnership Government, that growth in public spending - including both current and capital expenditure - is consistent with the requirements of the EU Fiscal Rules.
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