Written answers

Thursday, 24 November 2016

Department of Public Expenditure and Reform

Public Expenditure Policy

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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26. To ask the Minister for Public Expenditure and Reform the extent to which the spending targets for 2016 are likely to be affected by any events in the interim; the extent to which any such affects have been quantified; and if he will make a statement on the matter. [36537/16]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Public expenditure has been managed in line with key fiscal targets over the last number of years. To ensure that these targets are met, managing the delivery of public services within budgetary allocations is a key responsibility of each Minister and their Department.  The drawdown of funds from the Exchequer is monitored against the published expenditure profiles.  In this regard, the voted expenditure report published with the end-October Exchequer statement outlines that gross voted expenditure of €44,219 million to end-October was €795 million (1.8%) below profile.

As set out in the Expenditure Report 2017, total gross voted expenditure for 2016 is now estimated at €56.1 billion. This is 0.6 per cent higher than the level set out in the Estimates for 2016. This increase in expenditure reflects an additional €200 million of capital funding for necessary repair work to transport infrastructure arising from flood damage at the start of the year and expenditure arising on school building works. In addition, an amount of €220 million is included to fund a Christmas Bonus to long-term Social Welfare recipients. In line with previous years, it is anticipated that the additional cost of providing this bonus will be offset by year-end savings across a number of Departments. The Christmas Bonus will be funded through both voted expenditure and the Social Insurance Fund. In addition, since publication of the Expenditure Report 2017, given the need to respond proactively to growing uncertainties for Irish based enterprise, additional funding is to be allocated to the Department of Jobs, Enterprise and Innovation in 2016. This additional funding, which by fast-tracking the delivery of certain spending programmes in 2016 through an increased 2016 allocation, should provide the space for increased spending on Brexit initiatives in 2017 within the allocation for 2017 agreed at Budget time. All of these additional amounts will be  reflected in the Supplementary Estimates presented to the Dáil.

Given the scale of the under-spend versus profile at the end of October and the level of savings surrendered to the Exchequer at the end of 2015, it is expected that all Supplementary Estimates can be accommodated within the overall gross voted expenditure amount of €56.1 billion set out in the Expenditure Report 2017.

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