Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

140. To ask the Minister for Public Expenditure and Reform the breakdown of the components of pre-committed expenditure in each year from 2019 to 2024 or the latest available date; and the gross figures for pre-committed expenditure in each year in tabular form. [15213/19]

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

142. To ask the Minister for Public Expenditure and Reform the projections for expenditure to account for demographics from 2019 to 2024 or the latest available date in tabular form. [15215/19]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 140 and 142 together.

Table 9 on page 45 of Expenditure Report 2019 sets out the revised baseline for current expenditure out to 2021 after taking account of pre-commitments in relation to demographic pressures, public service pay agreements, and the estimated carryover impact of certain budget measures.

Expenditure Report 2019 sets out demographic costs of €0.45 billion for 2020 and 2021. These estimates are informed by the Irish Government Economic and Evaluation Service (IGEES) paper ‘Budgetary Impacts of Changing Demographics 2017 – 2027’. These are included in multi-annual Ministerial expenditure ceilings for Health, Social Protection and Education. Beyond 2022, the IGEES paper suggests demographic costs of approximately €0.4 billion per year, however these figures will be subject to review in the near future. Amounts are also included for public service pay agreements in table 6, on page 42 of Expenditure Report 2019. These resources are included on an aggregate basis and are to be allocated to the relevant Ministerial Vote groups as part of the annual Estimates process.

An amount of €0.4 billion is included for the Public Service Stability Agreement for 2020 and €0.3 billion for 2021. Table 7, on page 43 of Expenditure Report 2019 sets out the carryover impact of certain current expenditure measures announced as part of Budget 2019, amounting to €0.3 billion. As these estimates relate to measures being implemented in 2019, they will be impacted by the actual cost and timing of implementation and consequently the estimated costs will be reassessed during 2019 and set out in the Mid-Year Expenditure Report. As outlined in Expenditure Report 2019, these costs would need to be met from the remaining unallocated resources in the absence of any re-prioritisation of expenditure identified during the Estimates process, informed by the Spending Review. These costs, as included in the Expenditure Report 2019, for the period out to 2021 are set out in the following table.

Pre-committed Gross Voted Current Expenditure 2020 - 2021

Planned capital investment levels out to 2027 have been set out under the National Development Plan, allowing for long-term planning of infrastructural investment in Ireland. The amounts included for Exchequer Public Capital Expenditure, as set out in the Revised Estimates Volume 2019, out to 2022, and the NDP in later years are set out in the following table.

Exchequer Public Capital Expenditure 2020 - 2027

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

141. To ask the Minister for Public Expenditure and Reform the breakdown of the components of pre-committed capital expenditure in each year from 2019 to 2024 or the latest available date; and the gross figures for pre-committed capital expenditure in each year in tabular form. [15214/19]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As the Deputy will be aware, the National Development Plan, published last year, demonstrates the Government’s commitment to meeting Ireland’s infrastructure and investment requirements over the next 10 years, through a total estimated investment of €116 billion over the period to 2027.  In 2019, capital expenditure of €7.3 billion represents an increase of approximately €1.4 billion or 24% over the 2018 outturn figure.

Although the NDP set out gross voted capital expenditure allocations on a Ministerial level for the period 2018 – 2022, these figures can only be viewed as indicative allocations and not pre-commitments until such time as they are finalised in the Revised Estimates Volume and approved in the Dáil through a Vote. I expect that it will be necessary to make some moderate adjustments to the published allocations over the period, however, I believe that any amendments will be modest and will not pose any material effect on Departmental allocations. Thus, NDP gives a very clear signal of Government's long term capital spending plans.

While my Department sets the capital allocations for Departments and the delegated sanction arrangements under which Departments make their spending decisions, the actual roll-out of particular capital projects and programmes is, of course, managed by the individual line Departments and their agencies who are responsible for project and programme delivery.

As the NDP states, each Government Department is responsible for ensuring that its proposed projects meet with appropriate regulatory requirements including those related to planning law and environmental impact assessments. Departments must also ensure that individual projects and investment proposals meet all of the relevant appraisal processes and value-for-money tests required under the Public Spending Code, before Exchequer resources are ultimately expended on the relevant projects. Individual Departments also have the obligation to manage any multi-annual contractual commitments within the terms of their sanction.