Bernard Durkan (Kildare North, Fine Gael)
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16. To ask the Minister for Public Expenditure and Reform the extent to which he expects public expenditure and reform targets to remain an integral part of economic strategy in the future; the extent to which he is of the view that prudent management in this area is likely to remain beneficial to the future of the country; the extent to which strategy is likely to be guided by the ratio of total outstanding debt, current debt as a percentage of GDP-GNP or alternative; the extent to which performance here compares with other jurisdictions inside and outside the eurozone throughout the European Union; and if he will make a statement on the matter. [29089/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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As outlined in the Summer Economic Statement published last month, the Government is determined to ensure that the budgetary strategy is based on steady increases in public expenditure underpinned by stable and predictable tax revenues. To deliver on this objective it is essential that expenditure increases to deliver improvements in services are affordable and sustainable over the medium-term. This will require prioritisation and realism in the allocation of resources and a focus on the extent to which public spending is delivering on key policy objectives.

Taking into account risks in the external environment, the Government will prioritise spending that mitigates risk, enhances resilience of the economy and raises our growth capacity.  This is the context for Project Ireland 2040 and the capital expenditure allocations set out in the National Development Plan 2018-2017 (NDP). The increases in investment set out in the NDP will move Ireland’s public capital investment, as a share of national income, from relatively low levels following the recent recession to amongst the highest in the EU.

Public Service Reform has consistently been a key priority, with a comprehensive series of reforms having been implemented since the first Public Service Reform Plan was published in November 2011. The current plan, Our Public Service 2020, sets a path for improvements beyond 2020.   

Irish public debt remains high, with the debt-to-GNI* ratio at an estimated 100 per cent last year. Such elevated debt levels weigh on the capacity of the public finances to respond to any economic downturn in the future. Therefore, we must continue to pursue a prudent budgetary policy so that we have room for manoeuvre in the event of a major shock to the economy at some point in future.