Gerald Nash (Louth, Labour)
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51. To ask the Minister for Public Expenditure and Reform if he plans to exceed the 5% expenditure rule in respect of Budget 2024; and if he will make a statement on the matter. [21438/23]

Paschal Donohoe (Dublin Central, Fine Gael)
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A 5% growth rate for core expenditure was set out in the Summer Economic Statement 2021 as part of our medium term expenditure strategy. This strategy aims to align core voted expenditure growth with the trend growth rate of the economy as measured by GNI*. This seeks to ensure a level of public spending that is sustainable, allowing us to provide consistent investment in delivering public services and infrastructure.

In setting expenditure parameters, however, the Government is aware that our fiscal strategy also needs to adapt to the evolving nature of our economy and society. Accordingly, last summer Government took the decision to increase the growth rate of public expenditure above 5% for Budget 2023 to take account of higher than anticipated inflation. This adjustment to the expenditure strategy allowed us to balance the immediate need to support households, individuals, businesses and our core public services against the longer term need to ensure sustainable public finances.

The Stability Programme Update was published last month. This set out - on a technical, no policy change basis – voted expenditure projections out to 2026. On this basis, the voted expenditure ceilings reflect the 5% growth rate anchor for core spending that has been set out under the medium term strategy.

The Summer Economic Statement provides the key anchor for budgetary policy each year. Over the coming months, in advance of the 2023 Summer Economic Statement I will further consider our budgetary position, in collaboration with the Minister for Finance. The 2023 Summer Economic Statement will set out the expenditure parameters for Budget 2024, taking into account the latest data available.