Written answers

Wednesday, 12 April 2017

Department of Public Expenditure and Reform

Expenditure Reviews

Photo of Tommy BroughanTommy Broughan (Dublin Bay North, Independent)
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244. To ask the Minister for Public Expenditure and Reform the details of the implementation of the comprehensive spending review as announced in budget 2017; and if he will make a statement on the matter. [18496/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Work on the 2017 Spending Review began earlier this year, in January. The approach taken to this review differs from the Comprehensive Spending Reviews undertaken in 2011 and 2014 in that it does not cover total Government expenditure in a single year. The 2011 and 2014 reviews were conducted at a time when Ireland was about to enter, or already in an Excessive Deficit Procedure (EDP) under the corrective arm of the Stability and Growth Pact (SGP). Now under the preventative arm of the SGP, we find ourselves in a different fiscal and economic landscape where moderate, sustainable expenditure growth is planned over the medium term.

This year's review is the first in a planned series of 'rolling' selective reviews that will take place each year to 2019. This review will systematically examine existing spending programmes to assess their effectiveness in meeting policy objectives and to identify scope for re-allocating funding to meet expenditure priorities. This will allow Government to tackle any concerns identified in these areas while also potentially making some funding available for high-priority policies. A significant portion of expenditure will be examined in 2017, with the remainder to be examined in 2018 and 2019. Over the three year cycle, the totality of Government expenditure with the exception of pay rates will be reviewed in overall terms.  Engagement is ongoing between officials in the Department of Public Expenditure and Reform and those in other Government Departments on the topics under review for this first year.

The chosen approach to the Spending Review has been informed by the Irish Government Economic Evaluation Service paper 'Spending Reviews in Ireland: Lessons for the Future' and has been tailored to reflect the changed context and lessons learned from previous reviews. A copy of this paper is available at igees.gov.ie.

This approach of ongoing examination and re-prioritisation of funding is standard international practice in public expenditure management. It allows for an examination of the totality of Government spending on an ongoing basis, rather than focusing on the additional amount that may be available in a given year. This is intended to ensure that the maximum efficiency and effectiveness is achieved for every euro of public funding and allows a focus on the medium-term sustainability, efficiency and effectiveness of public spending.

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