Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 200 to 203, inclusive, together.

The 2022 Summer Economic Statement sets out the budgetary strategy for the period to 2025. As part of the total budget package set out for each year to 2025, amounts of between €3 to 3.4 billion are indicated as for ‘budgetary decisions’ in Table 1 of the document. For 2023, this figure under ‘budgetary decisions’ is €3.0 billion. This category comprises provision for Existing Levels of Service (ELS) costs and the planned core capital expenditure increases under the National Development Plan (NDP).

The NDP published in October 2021 provides a detailed and positive vision for Ireland over the next 10 years, and sees total public investment of €165 billion over the period 2021-2030. Core capital increases in upcoming Budgets will be in line with the parameters set out in the NDP, with an additional €0.8 billion in 2023.

Under the approach set out in last year’s Summer Economic Statement, 3% of the core current expenditure base is being set aside each year to meet ELS costs. These include costs arising from demographic pressures in areas such as Social Protection, Health and Education; carryover costs from measures already introduced in prior year Budgets; and public service pay commitments under existing pay deals. €2.2 billion is indicated under Budget 2023 to meet these costs.

The division of the available resources under this 3% provision between the areas covered by ELS will be examined and allocated as part of the Estimates process each year, with the breakdown published in the Expenditure Report.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

As set out in the Summer Economic Statement, core capital expenditure will reach €11.7 billion in 2023, in line with the National Development Plan 2021-2030 (NDP). Departmental capital allocations for 2022 were published in the Revised Estimates Volume 2022. Core capital allocations by Department have also been provided in tabular form in Table 4.2 of the National Development Plan 2021-2030 document, out to 2025 for each Department. Final Departmental capital allocations for 2023 will be finalised over the coming weeks as part of the Budget 2023 preparations.

The NDP, published in October 2021, provides for total public investment of €165 billion over the period 2021- 2030. The NDP is the largest in the history of the State, with Ireland’s annual capital investment budget as a share of national income now among the highest in the EU. This funding will provide for key investment across sectors including health, education and transport while also investing in Ireland’s climate goals.

As Minister for Public Expenditure and Reform I am responsible for setting the overall capital allocations across Departments and for monitoring monthly expenditure at Departmental level. The responsibility for the management and delivery of the individual investment projects, within the allocations agreed under the National Development Plan (NDP), rests with the individual sponsoring Department in each case.