Donnchadh Ó Laoghaire (Cork South-Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

27. To ask the Taoiseach and Minister for Defence for the amount of funding surrendered from his Department to the Exchequer in 2024; the reason the allocated funds were unspent; and the amount he expects his Department to surrender in 2025, and the reason therefor. [6105/25]

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

There are two Votes in the Defence Vote Group, Vote 36 (Defence) and Vote 35 (Army Pensions).

The provisional outturn for 2024 for Vote 36 (Defence) indicates a net surplus to be surrendered to the Exchequer of €9.0 million. This figure includes surplus Appropriations in Aid of €8.2 million, which, as the Deputy knows, cannot be used to fund additional expenditure and must be surrendered to the Exchequer. Appropriations in Aid on the Defence Vote primarily comprise of superannuation receipts and UN receipts, the timing of which can be difficult to predict. Surplus Appropriations in Aid are not unique to Defence and are a common occurrence across Votes.

Excluding surplus Appropriations in Aid, the surrender on the gross Defence Vote allocation of €932.7 million was €0.8 million, or 0.1% of the gross allocation.

During 2024, as in other years, underspends arose across a number of subheads. In line with public financial procedures, and with the approval of the Department of Public Expenditure, NDP Delivery & Reform, these savings were redirected to meet spending pressures across the Defence Vote, including on priority capital expenditure projects that facilitated the acquisition of defensive equipment and the construction or upgrade of barracks infrastructure.

This prudent approach, which adhered fully to all relevant public procurement and financial guidelines, resulted in total capital spending of €188 million in 2024, some €12 million in excess of the original capital allocation of €176 million.

In relation to 2025, early projections are that the end of year spending position on the Defence Vote will align very closely with the allocation.

With regard to Army Pensions expenditure, which is predominantly demand-led and non-discretionary, the provisional outturn for 2024 for Vote 35 (Army Pensions) indicates a net surplus to be surrendered to the Exchequer of €12.4 million.

Funding for new pensions in 2024 was based on an estimate of 440 new retirees going on pension, however the actual number of such additions was 284. The mix between officer and enlisted retirees also varied from expectations, and regrettably a higher than predicted number of existing pensioners passed away. In addition, the mandatory retirement ages for members of the Permanent Defence Force were increased in 2024. While it is too early in the process to determine exactly what impact this has had, it is likely to have had some impact.

The net 2025 Estimates provision for Vote 35 Army Pensions is €324 million. While Defence Forces Pensions costs are difficult to predict, it is currently anticipated that 2025 expenditure will align with the Estimate provision for the Vote as the year progresses.