Bernard Durkan (Kildare North, Fine Gael)
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248. To ask the Minister for Public Expenditure and Reform if his Department has identified particular tendencies in the context of public spending, current or capital, including inflationary elements which may require corrective measures; and if he will make a statement on the matter. [56138/21]

Bernard Durkan (Kildare North, Fine Gael)
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251. To ask the Minister for Public Expenditure and Reform the extent to which he remains satisfied that public spending continues to proceed as anticipated notwithstanding the ongoing impact of Covid-19; and if he will make a statement on the matter. [56141/21]

Bernard Durkan (Kildare North, Fine Gael)
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255. To ask the Minister for Public Expenditure and Reform his preferred options to meet ongoing social and economic requirements in the context of current and capital expenditure in line with prudent management but placing sufficient emphasis on important structures such as housing; and if he will make a statement on the matter. [56145/21]

Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 248, 251 and 255 together.

As set out in the most recent Fiscal Monitor, total gross voted expenditure at end-October was €67.5 billion. While this is almost €2 billion ahead on the same period in 2020, it is over €2.4 billion or 3.5% below the level of spending that had been profiled for this period. Of this, gross current expenditure at the end of October of €62.5 million was €0.9 billion or 1.5% behind profile. Capital spending of €5.1 billion was €1.5 billion or 22.9% behind profile with the public health restrictions in place earlier in the year, including the shutdown of construction, impacting on the spending plans of Departments.

Departments may carryover up to 10% of the capital envelopes by way of deferred surrender to the following year for spending in that year on priority capital programmes and over €0.7 billion was carried over from 2020 into 2021. As outlined in the Expenditure Report 2022, based on estimates provided by Departments it is currently expected that a broadly similar amount will be carried over from 2021 into 2022.

Responding to the challenges posed by both Covid-19 and Brexit has been a key priority in recent budgets, with significant funds allocated to provide counter-cyclical supports. Indeed, to respond to the pandemic, approximately €30 billion in funding has been made available for direct Covid-19 related expenditure supports throughout 2020 and 2021. This provision has enabled the introduction of a wide range of support schemes and measures across Government and has been targeted at supporting our health service to respond to the crisis, to provide income supports to people who lost their jobs, and to ensure the survival of enterprises beyond Covid.

While such a counter-cyclical approach was both appropriate and necessary, the ongoing cost has been significant. As we look forward, this Government remains committed to improving the long-term potential of the economy through carefully planned investment. Accordingly, Budget 2022 was prepared in line with our medium term fiscal strategy and reflects our commitment to:

- Return the public finances to a more sustainable position;

- Address our infrastructure challenges including in the key areas of housing and climate action;

- Invest in our health care system;

- Continue to enhance our other core public services and social supports; and

- Ensure a balanced recovery from the pandemic.

Key to this strategy is the commitment to grow core expenditure programmes broadly in line with the trend growth rate of the economy, or by an annual average of just over 5 per cent, over the period to 2025 in tandem with the phased withdrawal of the exceptional funding for Covid supports and measures introduced to deal with the adverse consequences of Brexit.

Adopting this approach to expenditure growth will ensure an appropriate buffer against the risks of pro-cyclicality and inflation. Furthermore, the expenditure strategy also allows for steady improvements in public services while, at the same time, narrowing the deficit and stabilising the debt-income ratio.