Pearse Doherty (Donegal, Sinn Fein)
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459. To ask the Minister for Public Expenditure and Reform if he will disaggregate the envelope defined as budgetary decisions in table 4 of the Summer Economic Statement 2021 by ELS, demographics, NDP and public pay for each of the years 2022 to 2025. [39502/21]

Michael McGrath (Cork South Central, Fianna Fail)
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As set out in the Summer Economic Statement, the medium term fiscal strategy provides for an average 5% annual growth-rate increase in Voted expenditure out to 2025, equating to increases in spending of between €4.0 billion to €4.4 billion from 2022 to 2025.

As set out in Box 2.1 of the Mid-Year Expenditure Report, published last week, a key part of the Estimates process involves agreement on the overall level of expenditure required to maintain existing level of service. This process involves detailed analysis requiring validation at programme level and consideration of a range of factors including actual demand in the current year compared to that underpinning the budgetary allocation, the potential impacts of new and existing initiatives on demand and utilisation patterns, impact of demographics on demand, specific price pressures, as well as any capacity constraints that may exist.

The approach adopted in the Summer Economic Statement in relation to “pre-committed” current expenditure differs from previous years with a provision of 3% of the core current expenditure base being made for existing level of service costs. Previously an amount was set aside for: demographics in Health, Education, and Social Protection; the cost of pay deals; and the carryover of prior year Budget measures only.

Conversely, the provision of 3% is based on budgets in previous years, and an assessment of the position in advance of Budget 2022. In total, a provision of €2.1 billion is reflected as being earmarked for ELS costs next year. This is a higher amount than would have been set out as “pre-committed” expenditure in previous years, with €1.1 billion earmarked in advance of Budget 2021, and offers a better overall reflection of the additional costs required to deliver existing services next year.

Detailed work is ongoing by the Department of Public Expenditure and Reform regarding the finalisation of existing level of service costs at a departmental level in advance of Budget 2022. To the extent that the additional cost associated with maintain existing levels of service is less than €2.1 billion, this would increase the amount available to fund new measures.

Pearse Doherty (Donegal, Sinn Fein)
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460. To ask the Minister for Public Expenditure and Reform if he will disaggregate the difference in core capital as outlined in table 4 and capital spending per SES in table 5 in the Summer Economic Statement; and if he will make a statement on the matter. [39503/21]

Michael McGrath (Cork South Central, Fianna Fail)
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Table 5 of the Summer Economic Statement sets out the overall Government spending projections from 2020 to 2025. These include both core capital spending as well as one-off temporary spending related to much needed supports to manage challenges related to the COVID-19 pandemic and the impacts of Brexit. Other one-off temporary measures also include EU funding supports such as the National Recovery and Resilience Plan and the Brexit Adjustment Reserve, which will be rolling out from this year.

In relation to the year 2021, table 5 reflects the combination of core capital and one-off support measures relating to Brexit and COVID-19. These one-off supports for capital total c.€0.4 billion in 2021.

In relation to the years 2022 to 2025, the difference between the capital figures in table 4 and table 5 reflect the once-off funding being received from the EU in relation to the National Recovery and Resilience Plan (NRRP). The impact of these figures can be seen in table 8 of the Summer Economic Statement (rounding may affect totals).