Donnchadh Ó Laoghaire (Cork South-Central, Sinn Fein)
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187. 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. [18072/25]

Simon Harris (Wicklow, Fine Gael)
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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, spending is being monitored closely and 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 €12.5 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.

This significant allocation provided in Budget 2025 will allow Defence to deliver services across its key strategic elements: Defence Policy, ensuring the capacity to deliver, and Defence Forces operations and will ensure that the Defence Forces continue to have the resources necessary to deliver on all roles assigned by Government, both at home and overseas.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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189. To ask the Taoiseach and Minister for Defence if he intends to revise downwards his proposed increase in military expenditure arising from increased economic uncertainty; and if he will make a statement on the matter. [17921/25]

Willie O'Dea (Limerick City, Fianna Fail)
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190. To ask the Taoiseach and Minister for Defence the proposed increase in defence spending in view of the recent geo-political developments; and if he will make a statement on the matter. [17918/25]

Simon Harris (Wicklow, Fine Gael)
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I propose to take Questions Nos. 189 and 190 together.

It is acknowledged that there are ongoing geo-political and potential macro-economic challenges facing Ireland, and indeed beyond. However, funding for Defence remains a key priority for this Government. As the Deputy will be aware, funding for Defence is increasing in line with the Government decision to move to Level of Ambition (LOA) 2, as recommended by the Commission on the Defence Forces, with a commitment to increase the Defence budget to €1.5 billion, at 2022 prices, by 2028.

In that regard, the Defence Vote Group has been provided with a funding allocation of €1,350 million in Budget 2025 - €1,021 million for the Defence Vote and €329 million for the Army Pensions Vote. This represents a €100 million (8%) increase on the corresponding 2024 allocation and a €243 million (22%) increase since 2022.

Beyond this timeframe, the Programme for Government signals an intention to continue to increase investment in Defence, providing the funding and political support necessary to achieve Level of Ambition 2 Enhanced Capability, and move as quickly as possible to Level of Ambition 3 with commensurate investment as appropriate.

As part of that process, officials from my Department will shortly commence engagement with Department of Public Expenditure, NDP Delivery & Reform officials on Estimates 2026 matters, and are currently actively engaging on the review of the National Development Plan, which is due to be completed in July 2025.