Written answers

Tuesday, 22 November 2016

Department of Public Expenditure and Reform

Budget 2017

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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358. To ask the Minister for Public Expenditure and Reform further to Parliamentary Question No. 164 of 20 October 2016, if the carryover impact to 2018 of expenditure measures announced in budget 2017 reduces the estimated net fiscal space for 2018 euro for euro; and if he will make a statement on the matter. [35969/16]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As set out in my answer to the previous parliamentary question to which the Deputy refers, the Estimates for 2017 include an estimated carryover impact into 2018 of approximately €½ billion arising from increases in Departmental allocations.  The final cost of the carryover impact will be assessed and updated on an ongoing basis in line with updated information on trends in voted expenditure as 2017 unfolds.

The Deputy should note that as this carryover impact refers exclusively to current expenditure measures, there is no benefit arising from the 'capital smoothing' adjustment applied to capital expenditure under the EU Stability and Growth Pact.  The carryover costs will need to be accommodated within the net fiscal space available for Budget 2018 on a euro for euro basis, to the extent that such carryover impact is not reduced by reprioritisation of Departmental expenditure.

The Spending Review announced at Estimates time last month, scheduled to be carried out next year in advance of the Estimates for 2018, will among other issues, consider policy options for meeting the additional cost arising in 2018 of the Estimates 2017 expenditure measures.

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