John Lahart (Dublin South West, Fianna Fail)
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58. To ask the Minister for Public Expenditure and Reform the cumulative additional spending his Department has sanctioned as a consequence of the pandemic since March 2020; and if he will make a statement on the matter. [45488/21]

Michael McGrath (Cork South Central, Fianna Fail)
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Responding to the impacts of Covid-19 has been a key priority for Government with significant supports put in place to respond to the pandemic. Across 2020 and 2021, Government will have made available over €31 billion for direct expenditure measures to support our people, businesses and key public services deal with the impacts of Covid-19.

Over €16½ billion was allocated during 2020 to Departments in response to Covid-19 following the onset of the pandemic.

For 2021, spending on Covid-19 related measures is currently expected to cost almost €15 billion. As outlined in the Mid-Year Expenditure Report, €10.7 billion of this amount has been allocated to Departments in Estimates voted by Dáil Éireann, with approximately €4 billion to be allocated including for measures announced in June under the Economic Recovery Plan.

Budget 2021 had set aside €12 billion for Covid-19 measures, with €6½ billion of this allocated to Departments and €5.4 billion initially set aside in reserve to allow Government respond to the evolving situation with the virus during the year. The increase in expenditure relative to the amount set aside in October last year is driven primarily by the higher than anticipated expenditure on the Covid-19 related income and employment support schemes following the resurgence of the virus in late 2020 and the decisions to extend the Employment Wage Subsidy Scheme and the Pandemic Unemployment Payment beyond the end of March. As set out in the Mid-Year Expenditure Report, it is now estimated that the cost of Covid-19 related supports provided through the Department of Social Protection will be c. €10 billion this year.

As set out in the Summer Economic Statement, inclusive of an amount of c. €0.2 billion in spending under the National Recovery and Resilience Plan, €7 billion is being made available for Covid-19 related expenditure, including a contingency fund, which will allow essential public health measures to continue in key areas next year and for a phased withdrawal of supports.

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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60. To ask the Minister for Public Expenditure and Reform the estimated overall level of Covid-19 related public expenditure that he anticipates in 2022; and if he will make a statement on the matter. [45492/21]

Michael McGrath (Cork South Central, Fianna Fail)
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The expenditure strategy for 2022 set out in July’s Summer Economic Statement provided for up to €8.1 billion in non-core, temporary spending under the overall expenditure ceiling. This provides €7 billion for Covid-19 related public expenditure measures during 2022, including approximately €0.2 billion expected to be spent under the National Recovery and Resilience Plan. In addition, the €1.1 billion available under the Brexit Adjustment Reserve has been included under 2022 spending on a technical basis and will likely be allocated across Budget 2022 and Budget 2023.

Of this €7 billion funding provision for Covid-19 related measures, €1.5 billion has been indicated for automatic stabilisers, primarily job-seekers payments, while €2.5 billion will be available to meet pressures that may remain in delivering public services in line with any continued public health requirements. Decisions on specific measures to be covered by this funding will be made as part of the Estimates process and, as in 2021, allocations to Departments for Covid-19 measures will be separately identified in the Expenditure Report. These amounts had been included in the Stability Programme Update published in April.

Given the continued uncertainty in relation to the virus and the requirement to ensure that supports are carefully withdrawn in a manner that supports recovery in the economy, the Summer Economic Statement included an additional €2.8 billion in funding that can be utilised to support a phased withdrawal of supports and also to make provision for a contingency reserve. This contingency reserve will allow Government flexibility to respond as the situation with the virus evolves.