Written answers

Thursday, 16 June 2022

Department of Public Expenditure and Reform

Public Expenditure Policy

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail)
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117. To ask the Minister for Public Expenditure and Reform if he will report on the level of public expenditure in the first five months of 2022; the comparison to the same period in 2021; and if he will make a statement on the matter. [29644/22]

Photo of Paul McAuliffePaul McAuliffe (Dublin North West, Fianna Fail)
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134. To ask the Minister for Public Expenditure and Reform if public expenditure was within profile during the first five months of 2022; and if he will make a statement on the matter. [29747/22]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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141. To ask the Minister for Public Expenditure and Reform the underspend against profile of gross voted expenditure at the end of May 2022; the percentage involved; the steps he intends taking to rectify this; and if he will make a statement on the matter. [30332/22]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 117, 134 and 141 together.

For the first five months of 2022, total gross voted expenditure was €31.8 billion. This was just slightly over the profiled spend with a variance of €114 million or 0.4%. This compares with just under €33 billion in overall gross voted expenditure at the end of May 2021, a reduction of €1.2 billion or 3.5% year on year. In net terms, total net voted expenditure to end-May 2022 amounted to €25.8 billion, which was €313 million or 1.2% below the amount profiled to be spent and €0.8 billion or 3.1% below the same period in 2021.

For current expenditure, gross voted spending was €29.6 billion at end May 2022 against €31.1 billion for the same period in 2021 – a reduction of €1.5 billion or 4.8%. Among the main changes was spending in Social Protection being €3.4 billion lower than in 2021, reflecting lower Covid-19 related spend than in 2021, while there was higher year on year current spending of just over €1 billion in the Department of Health.

Current spending was €571 million or 2.0% ahead of profile. Vote Groups with higher than profiled spend included Social Protection which was €315m or 3.3% ahead or profile, and Health which was €291 million or 3.4% above profile. Higher than expected spending in both Vote Groups was largely due to increased Covid-19 spending as a result of the Omicron wave against the amount allocated for Covid-19 schemes in their Estimates.

In relation to gross capital expenditure, end May spend of €2.2 billion was €316 million or 16.6% ahead on the same period in 2021. Capital spending in the Department of Environment, Climate and Communications was €0.4 billion or over six times higher than the same period in 2021, reflecting payment of the Electricity Credit to domestic account holders, with other year on year increases in Agriculture (€35m or 40%), Education (€44m or almost 18%) and eleven other Vote Groups.

Capital expenditure at end May was €457 million or 17.1% below profile. Capital spending was higher than profile in Agriculture and Education. However in the majority of Departments capital spending to end May was less than had been expected when profiles were prepared. Capital spending tends to be weighted toward the end of the year, and my Department will continue to closely monitor spend against profile.

Photo of Emer HigginsEmer Higgins (Dublin Mid West, Fine Gael)
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118. To ask the Minister for Public Expenditure and Reform his views on the expenditure measures that have been effective in funding public services; the guidance that his Department has provided to enhance productivity in the construction sector; and if he will make a statement on the matter. [31030/22]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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My Department is committed to delivering initiatives that enhance productivity in the construction sector. The Construction Sector Group (CSG) and the Construction Sector Subgroup are committed to delivering initiatives that enhance productivity, through seven priority actions.

In November 2021, I announced funding of €2.5 million over 5 years for the Build Digital Project (BDP). The BDP will transform the Irish construction and built environment sectors by enabling all stakeholders to develop, maintain, and continuously improve their capabilities through digital adoption to support delivery of PI2040. Overall, the project will enable parallel positive impacts for organisations across productivity, sustainability, procurement, and standards adoption.

Of the seven actions, work is ongoing on the national rollout of eplanning applications by the Local Government Management Agency. The option to submit planning applications digitally is now available in Galway and Tipperary. Other counties are currently being progressed in three waves, with the aim to finish this project by early 2023.

Other actions include the establishment of the Construction Technology Centre (CTC) which will support technological transformation in the construction sector. This will be established in early 2023. Additionally, work is also progressing on Modern Methods of Construction (MMC). The adoption of MMC will be vital in driving innovation in the wider construction sector, contributing towards the achievement of the Government’s ambitious capital investment plans.

Collaboration and continued engagement with industry representatives through the CSG is resulting in positive developments in terms of enhancing the efficiency and effectiveness of the construction sector, which will in turn enable the delivery of the Government's ambitions under the NDP.

Finally, a range of budgetary reforms have been put in place in recent years, to drive spending efficiency and effectiveness and the Programme for Government commits to continuing reform and improvement of the budgetary process. This work includes the ‘whole-of-year’ budgetary framework, the Spending Review process, Performance Budgeting and Equality Budgeting and the development of the Wellbeing Framework for Ireland.

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