Written answers

Thursday, 1 June 2017

Department of Public Expenditure and Reform

Fiscal Policy

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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17. To ask the Minister for Public Expenditure and Reform the extent to which he expects to be in a position to maintain prudent fiscal management while at the same time meeting requirements in terms of rejuvenation of the economy and wage restoration; and if he will make a statement on the matter. [26238/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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2015 marked the turning point where expenditure reductions were no longer required to meet our fiscal targets. In the three year period 2015 to 2017 there is annual average growth in gross voted expenditure of 3 per cent. This represents prudent growth in expenditure following the period when significant fiscal consolidation was required to put the public finances on a sound footing.

The Government continues to prioritise investment in economic and social infrastructure to underpin the economy’s growth potential. The Revised Estimates Volume 2017 provides an additional €0.3bn in capital expenditure over the 2016 outturn, bringing the total to €4.5bn. Furthermore, as indicated in the Stability Programme Update published last month, gross voted capital expenditure will increase to €7.3bn by 2021.

Within a context of increasing resources, managing the delivery of public services within Budgetary allocations remains a key responsibility of each Minister and their Department, and important measures are in place to help ensure that these budgetary targets continue to be met.  The drawdown of funds from the Exchequer is monitored against the published expenditure profiles.  There is regular reporting to Government on these matters, and information is published monthly, as part of the Exchequer Statement. Gross voted expenditure of €17,849 million to end-April was €282 million (1.6%) below profile.

Turning to public service pay the Government Expenditure Ceiling for 2018 includes a provision of €0.3 billion relating to pay commitments arising under the Lansdowne Road Agreement. As the Deputy will be aware, negotiations are currently taking place with the Public Service Unions on a successor to the Lansdowne Road Agreement.

Given the many competing priorities and demands for resources, the Spending Review currently underway will support prudent fiscal management and assist with prioritising between policy initiatives to ensure resources are allocated to areas where they can have the greatest impact in terms of social and economic gain.

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