Bernard Durkan (Kildare North, Fine Gael)
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401. To ask the Minister for Finance if he remains satisfied that the budget for 2021 continues to be adequate to meet contingencies; and if he will make a statement on the matter. [32083/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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Budget 2021 contained two contingency funds totalling €5.4 billion. At the time the Budget was drafted, these funds were designed to be flexible in light of the considerable uncertainty around the evolution of both the Covid-19 pandemic and Brexit, allowing Government to react swiftly and decisively to a constantly evolving environment without impacting on the baseline budgetary arithmetic.

Subsequent to the publication of the Budget, the trajectory of the virus necessitated the introduction of increased public health restrictions, with the majority of these funds needed to meet costs arising from the Government’s primary pandemic-related income support schemes: the Pandemic Unemployment Payment, Employee Wage Subsidy Scheme.

Moreover, around €700m has been earmarked for other Covid-related expenditure meaning that the €5.4 billion provided for in the two contingency funds will have been fully accounted for by the middle of this year.

As announced in the Economic Recovery Plan, Government is committed to continuing to provide all necessary supports to households and businesses, the cost of which will be funded through additional borrowing.