Ken O'Flynn (Cork North-Central, Independent Ireland Party)
Link to this: Individually | In context | Oireachtas source

212. To ask the Minister for Public Expenditure and Reform in view of the September 2025 warnings from the Irish Fiscal Advisory Council about Government overspending relative to agreed targets, the immediate measures being taken to contain expenditure within sustainable levels. [49509/25]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Fiscal Monitor is published on the third working day of each month and can be accessed at: www.gov.ie/en/department-of-finance/collections/fiscal-monitors-2025/. The Fiscal Monitor provides both gross and net year-to-date current and capital figures for each vote group. The report also details expenditure against profile as well as year-on-year performance. It also sets the latest 2025 allocation for each Department.

As at end August, year to date aggregate gross spending was €0.5 billion or 0.7% ahead of the amount profiled to be spent by Departments. As part of regular expenditure monitoring, Departments are required to provide explanations for significant variances, identify emerging risks, and outline mitigating measures to ensure they remain with their budgeted allocation.

In addition to monthly expenditure monitoring through the Fiscal Monitor, my Department manages expenditure pressures and potential overruns through the annual Estimates process, which provides a structured framework for reviewing departmental allocations. During the preparation of Estimates Departments are required to submit detailed information on spending trends, emerging pressures, and any anticipated deviations from their original allocations. This process allows for a detailed assessment of funding requirements and facilitates the allocation of resources across areas, subject to Government approval.

Furthermore, my Department engages in regular bilateral discussions with Departments to assess the sustainability of their spending plans. Managing the delivery of public services within budgetary allocations is the responsibility of each Minister and their Department, who are required to ensure that appropriate measures are in place to facilitate financial control within budgetary targets. As part of my Department’s role supporting the appropriate use of public funds across government bodies, it establishes the governance frameworks, or rules, setting out the principles and procedures for how money should be spent. The aim of these rules is to support Accounting Officers in discharging their responsibility to ensure expenditure is managed in line with the Voted allocation and that services are delivered in an effective and efficient manner to support the achievement of value for money.

The Irish Fiscal Advisory Council provide a valuable input into the discussion on how we resource our growing population and economy, and how we tackle the challenges which we are facing. I welcome the publication of the June Fiscal Assessment Report and the September Pre-Budget Statement and note the key findings. My Department takes the need for accurate and credible budgeting seriously.

Government set out the parameters for Budget 2026 in the SES with voted spending of €116.6 billion planned for next year. In the context of the annual Estimates process, Departments have been asked to identify efficiencies and reforms with a view to delivering policies and services as efficiently as possible. Following the conclusion of discussions with Departments and Ministers, allocations for next year for each Department will be published on Budget day in the Expenditure Report.