Joan Burton (Dublin West, Labour)
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132. To ask the Minister for Public Expenditure and Reform the projected additional fiscal space for budget 2018 from savings on the live register; and if he will make a statement on the matter. [41580/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Unemployment has reduced from over 15% in early 2012 to 6.3% in August 2017. On the basis of the improving labour market, there have been reductions in expenditure on providing income supports for people who are unemployed.

In arriving at estimates of fiscal space, an assumption is made about the level of Live Register related savings each year. The Expenditure Report 2017 set out costs of €0.3 billion for 2018 in relation to demographics net of estimated savings of €0.15 billion in Live Register related expenditure arising from continued improvement in employment. This estimated saving has already been built into net fiscal space calculations and has been taken account of in the Department of Social Protection’s pre-Budget ceiling for 2018.

My Department constantly monitors the level of spending across all areas of Government, including Live Register related costs. Overall spending in the Department of Social Protection was €77 million under profile at end-August 2017. There is ongoing detailed analysis into the related costs of the Live Register, and this analysis will feed into the Budget Estimates process and the setting of expenditure allocations for 2018, with any savings in Live Register related expenditure, in excess of the amount of €0.15 billion factored into the pre-Budget position, being available for other expenditure priorities.

Joan Burton (Dublin West, Labour)
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133. To ask the Minister for Public Expenditure and Reform the projected savings he has identified for budget 2018 from hidden fiscal space; and if he will make a statement on the matter. [41581/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Mid-Year Expenditure Report published last July stated that Gross Current Expenditure would reach an estimated €54.8 billion in 2018. I have consistently highlighted the requirement to focus on the totality of this expenditure in assessing how best to deliver quality public services rather than the planned annual increment reflected in estimates of fiscal space.

In this context in my speech accompanying the publication of the Estimates for 2017, I announced that a Spending Review of current expenditure would be carried out in advance of Budget 2018. The overarching objective of the Spending Review process is the development of an evidence base to inform the prioritisation of current expenditure to ensure that all Government expenditure is considered with regard to the principles of efficiency, effectiveness, sustainability and impact.

The 2017 Spending Review is the first in a series of rolling, selective reviews, which will cover the totality of Government spending over a three year period to 2019. The results of the first year of this new approach were published earlier this year alongside the Mid-Year Expenditure Report 2017 (link: ).The nature and objectives of the Spending Review are such that it was not envisaged that quantified savings would be explicitly identified as an outcome. This is in contrast to the position under the Comprehensive Spending Review process at which time there was an urgent requirement to achieve reductions in public expenditure to return the public finances to a sustainable trajectory.

The evident base generated by the Spending Review process is playing an important role in informing and assisting discussions on the preparation of the Estimates, both in regard to existing expenditure policy as well as the consideration of new policy proposals. This will continue into the future on the basis of the analysis and results generated in the further two years of the current three year spending review cycle.

My Department monitors the level of spending across all areas of Government throughout the year. At the end of August 2017 overall gross voted expenditure is €206 million under profile, split between €168 million in current and €38 million in capital. This emerging expenditure position is taken fully into account during the Estimates process.