Bernard Durkan (Kildare North, Fine Gael)
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63. To ask the Minister for Public Expenditure and Reform the degree to which he remains satisfied that the action taken by his Department to date remains sufficient to protect Ireland from the double impact of Brexit and Covid-19; if he has contemplated or is contemplating any further exercises in this regard; and if he will make a statement on the matter. [2786/21]

Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy correctly identifies, the past year has seen the policy landscape dominated by the double impact of Covid and Brexit, their impact on society and the economy, as well as the consequences this has had for public expenditure.

As part of Budget 2021, core current expenditure will grow by €3.8 billion, or just over just over 6%, compared to the allocation in 2020. This increase is primarily driven by an additional €1.9 billion for the Health sector to address capacity issues and enable our Health service better meet the needs of our citizens during the pandemic and beyond.

Outside of core expenditure commitments, there are a number of supports relating to the Covid-19 response that are reflected in Departmental Estimates. These costs amount to €6.5 billion and include €3.2 billion in Social Protection payments and €1.9 billion to support the Health service response to Covid-19.

There is also over €5 billion in Contingency funding which we have set aside to meet further expenditure requirements as they arise. By the end of this year my Department estimates that we will have made provision for over €28 billion in direct Covid related expenditure over and 2020 and 2021.

As a result of these measures, a general Government deficit of €18.4 billion, or 5% of GDP is estimated for 2020 – a €20 billion swing from 2019. A deficit of a similar size is expected again in 2021.

As a Government we are committed to restoring the public finances to a sustainable trajectory and ensuring that Ireland does not become an outlier as we emerge from the pandemic period.

The SPU, published last week, was prepared using certain technical assumptions in relation to expenditure. These assumptions included an annual average increase in core expenditure of almost 3½% per annum over the period 2022 and 2025 and an unwinding of the Covid-19 related expenditure.

On this technical basis, the SPU outlines that there is a credible path towards a sustainable budgetary position, with the phased unwinding of the temporary Covid-19 related expenditure supporting the better alignment of revenue and expenditure by the mid-part of the decade.

The Summer Economic Statement will offer the opportunity to present a more informed strategic view of the public finances. By that stage the vaccination programme will have advanced significantly, the impacts of the UK’s departure from the single market will be better understood, and the full effect of Covid-19 on the public finances will be more complete.

Gerald Nash (Louth, Labour)
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64. To ask the Minister for Public Expenditure and Reform his plans to establish a new oversight, accountability and transparency unit in order to regularly record the allocation of capital expenditure and grants on a publicly accessible Open Ireland portal; and if he will make a statement on the matter. [20243/21]

Michael McGrath (Cork South Central, Fianna Fail)
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As Minister for Public Expenditure and Reform I am committed to openness and transparency. My department produces an online Databank, which includes a comprehensive set of data on voted public expenditure in Ireland. I am responsible for the annual Estimates of Expenditure, and for the multi-year capital envelopes, which set the overall capital allocations across Departments; and for the ongoing monitoring of expenditure, both current and capital, that takes place across the Departments. Responsibility for the management and delivery of the Departmental capital expenditure programmes, and of individual investment projects, within these agreed allocations is the responsibility of the individual Department in each case.

In relation to spending, my Department is in regular contact with all other Departments and Offices to ensure that expenditure is being managed within the overall fiscal parameters. The drawdown of funds from the Exchequer is reported on each month against expenditure profiles in the Fiscal Monitor published by the Department of Finance. All revenue and expenditure returns are measured against targets called profiles, which are set at the start of the year. The targets are based on forecasts published in the Budget. The Fiscal Monitor covers the cash inflows and outflows of central government’s main treasury account, the Central Fund. Revenue items include tax receipts, non-tax revenues and capital receipts. Expenditure is composed of departmental spending and non-voted expenditures such as debt servicing costs.

More specifically on the capital expenditure area, a suite of key reforms has been introduced since 2018 to support the efficient implementation of Project Ireland 2040 and its objectives, including:

Establishment of a Construction Sector Group to ensure regular and open dialogue between Government and the construction sector stakeholders;

A Project Ireland 2040 Delivery Board, consisting of Secretaries General across key infrastructure Departments, which meets regularly to ensure effective leadership of the implementation process. The minutes of the Delivery Board shall be available for access online shortly, and I have recently announced that the governance and capability of the Delivery Board will be enhanced through bringing on board a total of five external independent members;

The establishment of a National Investment Office in my Department to coordinate reporting on the National Development Plan and to drive reforms included strengthened business case and project appraisal;

A Capability Review of public sector bodies recently completed by EY on behalf of my Department to ensure that the State’s delivery practices are of the highest standard; and

The update of the Public Spending Code and review of construction procurement strategy as part of the ongoing reform of Ireland’s capital management systems.