Dara Calleary (Mayo, Fianna Fail)
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35. To ask the Minister for Public Expenditure and Reform if the €788 million below profile announced in the fiscal monitor will be returned to the central fund or if the funds will be kept in each Department in the event that spending projections across Departments are not met; and if he will make a statement on the matter. [53463/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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As set out in the Fiscal Monitor for November, published by the Department of Finance, net voted expenditure was €788 million or 1.9% below profile. However, this aggregate underspend versus profile has been impacted by almost €0.4 billion by certain timing issues in relation to the Local Government Fund.

Current expenditure in the Department of Housing, Planning and Local Government is over €260 million below profile. This is due to the fact that full draw down from the Local Government Fund sub-head will be completed in December instead of November.

Net Capital expenditure in the Department of Transport, Tourism and Sport is €147 million below profile primarily due to the timing of a receipt of €129 million from the Local Government Fund. This amount was received in November but had been profiled for December.

Excluding these items, net current expenditure at the end of November is just under €70 million below profile and net capital expenditure is €326 million below profile. As outlined in the Appropriation Bill 2017, published on 7 December, a sum of €70.3 million in capital underspends from 2017 is available for spending in 2018 under the multiannual capital envelopes carryover facility. However, given the aggregate level of underspends at the end of November, after taking account of the timing issues and capital carryover, it is likely that there will be amounts surrendered by Departments at the end of the year.

In addition, the Deputy may wish to note that due to the scale of overall expenditure, and the cash basis of Government accounting, Supplementary Estimates can be required arising from policy decisions, overruns, timing issues or shifts in expenditure requirements. 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, underspends surrendered to the Exchequer at the year-end will mitigate the impact of the Supplementary Estimates approved by the Dáil last week.