Willie O'Dea (Limerick City, Fianna Fail)
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96. To ask the Minister for Public Expenditure and Reform the amount of Covid-19 contingency funding that was drawn down in the first three months of 2022; and if he will make a statement on the matter. [20337/22]

Michael McGrath (Cork South Central, Fianna Fail)
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The Revised Estimates 2022 set out an Government Expenditure Ceiling of €87,593 million. This reflected funding allocated to Departments of almost €83 billion, with further amounts totalling just over €4.6 billion held in reserve. This reserve amount included some €3.9 billion in the Covid Contingency.

In February 2022 Government announced a cost of living package including the Energy Credit with an expected cost of €400 million, part of which was to be met from reallocation. Given that this amount is considerable in relation to the original Estimate for the Department of Environment, Climate and Communications, a Supplementary Estimate for Vote 29 to provide for the additional funding needed for the Energy Credit was brought before the Dáil in March. Following this allocation over €3.5 billion remains in the Contingency. This amount is as of yet allocated however a number of areas may need to draw on the contingency later in the year.

Costs incurred on the Employment Wage Subsidy Scheme (EWSS), Pandemic Unemployment Payment (PUP) and Covid-19 Illness Benefit to date are currently in excess of the REV provision for these schemes and a further allocation to the Department of Social Protection may be required in respect of these later this year. Further Covid-19 related allocations to Departments may also be needed to meet the cost of the Quarter 1 Commercial Rates Waiver, the health staff recognition payment and for the costs of antiviral drugs.

Costs relating to the other cost of living measures announced since Budget 2022, to the extent that these cannot be met though savings in existing departmental allocations, will also need to be funded.

Together, these Covid-19 related spending pressures and the cost of living expenditure package mean that approximately €1½ billion of this Contingency reserve is in effect committed. While there is potential for some of these costs to be met from underspends in other areas, if the full amounts fall to be met from the reserve funds this would leave a remaining balance of some €2½ billion. In addition, there may be further Covid-19 related spending requirements during 2022 which would need to be met from this reserve as Covid-19 related employment support schemes are unwound and depending on the position with the virus later in the year.

Furthermore, the cost of providing supports to Ukrainian refugees arriving in the State are expected to be significant. If these costs cannot be met from within the Departments allocations they will fall to be met in the first instance from funds with the Contingency.