Written answers

Thursday, 14 December 2017

Department of Public Expenditure and Reform

Public Expenditure Data

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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151. To ask the Minister for Public Expenditure and Reform the Departments or bodies under their aegis that are deemed to be best performing in terms of public expenditure and reform with respect to impact on the economic situation in general; and if he will make a statement on the matter. [53936/17]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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152. To ask the Minister for Public Expenditure and Reform if in the context of public expenditure and reform, he has identified specific areas of potential overexpenditure that may require attention in the course of 2017 or thereafter; and if he will make a statement on the matter. [53937/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 151 and 152 together.

Managing expenditure within their voted allocations is a key responsibility of each Minister and their Departments. As reported in the Department of Finance Fiscal Monitor, at the end of November overall gross voted expenditure of €51.5 billion was 1.3% below profile with current expenditure of €48.2 billion under profile in 15 out of 17 Ministerial Vote Groups.

However, given the cash basis of Government accounting and the scale of gross voted expenditure, over €58 billion in aggregate for 2017, there can be a need for Supplementary Estimates arising from policy decisions, overruns, timing issues or shifts in expenditure requirements. In aggregate, Supplementary Estimates of €0.49 billion have been presented to Dáil Éireann for approval this year and are set out in the table.

Supplementary Estimates by Vote€m
Vote 5 – Director of Public Prosecutions0.4
Vote 12 – Superannuation and Retired Allowances6.5
Vote 17 – Public Appointments Service0.7
Vote 20 – An Garda Síochána44.2
Vote 26 – Education and Skills124
Vote 34 – Housing, Planning and Local Government100
Vote 35 – Army Pensions10.7
Vote 37 – Employment Affairs and Social Protection10
Vote 38 – Health195
Vote 30 – Agriculture, Food and the Marine0.001
Vote 31 – Transport, Tourism and Sport0.001
Vote 32 – Business, Enterprise and Innovation0.001

As we are operating under the fiscal rules that apply under the preventive arm of the Stability and Growth Pact, Supplementary Estimates need to be accommodated within the requirements of the fiscal rules. Additional expenditure requirements in one Department may be offset by underspends in other areas. In this context, taking account of the overall expenditure position at the end of November, it can be expected underspends surrendered to the Exchequer at the year-end will mitigate the impact of the Supplementary Estimates.

Looking forward to 2018, taking into account the increased expenditure allocations set out in the Budget Estimates published on Budget day in October this year, and the key fiscal objective of achieving the structural deficit of 0.5% of GDP, it is important that Departments continue to manage expenditure within their allocations.

Sustainable public finances are necessary to support growth in the economy and build resilience to respond to potential adverse economic and fiscal developments. Budget 2018 sets out prudent sustainable growth in public expenditure. On Budget day, I announced an additional allocation of capital expenditure of €4.3 billion over the next four years up to the end of our existing Capital Plan. This additional capital investment is central to our response to Brexit and will allow major infrastructure projects to be planned over the medium term.

Education is vital to keeping our economy competitive and attracting investment. The allocation of over €10 billion for education is a new peak for the sector. Additional capital funding is also being provided over the period out to 2021 to address the infrastructure needs of the higher and further education sectors.

In conclusion, the increased expenditure set out on Budget day for schools, hospitals housing and public transport will continue to support economic growth, enhance the economy's resilience and help maintain its international competitiveness in terms both of trade and attractiveness to foreign direct investment.

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