Written answers

Thursday, 17 June 2021

Department of Public Expenditure and Reform

Covid-19 Pandemic Supports

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail)
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166. To ask the Minister for Public Expenditure and Reform the cumulative additional expenditure undertaken to support the economy and society during the Covid-19 pandemic to date; and if he will make a statement on the matter. [32359/21]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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To date over €28 billion has been provided in direct voted expenditure measures for Covid-19 related supports across 2020 and 2021. This substantial additional funding has been critical in supporting our citizens and businesses devastated by the impact of the pandemic and providing the necessary funding to our key public services to allow them to respond effectively to the crisis.

Following the onset of the pandemic in 2020, additional funding of over €16 billion was allocated to Departments during the year to provide supports in response to Covid-19. Key areas where this additional funding was allocated include: over €10 billion provided to the Department of Social Protection to fund measures including direct income supports for businesses and workers; €2.5 billion for the Health service; almost €1 billion for business supports through the Department of Enterprise, Trade and Employment in addition to €0.9 billion to meet the costs of the commercial rates waiver; along with substantial additional funding for the transport and education sectors. At the end of 2020, gross voted expenditure as per the outturn in the December 2020 Fiscal Monitor was €85.3 billion, almost €15 billion higher than the original pre-Covid allocation of €70.4 billion reflecting the impact of the additional funding allocated to respond to Covid-19.

Budget 2021 provided for an overall expenditure ceiling of €87.8 billion, with almost €12 billion of this available to fund measures to continue the response to the challenges of Covid-19. €6½ billion of this was allocated at Departmental level for measures related to Covid-19 while €5.4 billion was set aside in reserve.

Among the main measures provided for by the additional allocations to Departments: were the continuation of employment and income supports, with €3.2 billion for Social Protection; €1.9 billion to support the health service; just over €0.45 billion to the Education sector (including Further and Higher Education); roughly €0.45 billion for transport measures; €0.1 billion for on-going Covid-19 supports to businesses; and over €0.2 billion for measures to address the significant impacts on sectors including tourism, culture, and sport.

The allocation of almost €4.3 billion of contingency funding to Departments was agreed by Government in April. This provided for €4 billion of additional funding to the Department of Social Protection, primarily to fund the extension of the PUP and EWSS to the end of June, an additional €250m for a range of business supports and €10m additional funding to the Covid-19 Stability Fund.

The Economic Recovery Plan published by Government on June 1st announced continued support for people and businesses. Where costs for these measures exceed the provision already made available, additional estimates for Departments will be necessary, with an increase to the Government Expenditure Ceiling as required.

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