asked the Minister for Finance if he will state the total estimated capital expenditure of the State during the current financial year and the amount provided in the Estimates, distinguishing between (a) productive expenditure, and (b) nonproductive expenditure.
Ceisteanna—Questions. Oral Answers. - State Capital Expenditure.
asked the Minister for Finance if he will state (a) what reductions, if any, have been made in capital expenditure where payment will fall due (i) in the current, and (ii) in the coming financial year, giving in each case the service involved and the amount of the reduction; (b) the same information in respect of State and semi-State companies; and (c) the percentage reduction, expressed as a percentage of the full year's estimate, in the volume of the work, assuming the immediate reduction continues for 12 months.
I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 50 and 51 together.
As I said in my Financial Statement on 8th May last, the overall capital requirements of the State and other public bodies in 1956-57 were then settled at a gross figure of £43.5 million. If by productive expenditure the Deputy means expenditure yielding a direct annual return equivalent to the interest charge on the relevant borrowing, approximately three-fifths of this amount may be regarded as productive. That is not to say, of course, that capital expenditure may not be justifiable, within limits, on economic or social grounds, even if it is not directly productive in the financial sense.
On 25th July I outlined the general position as regards capital to the Dáil and pointed out that there was no escaping the conclusion that the net borrowing requirement for public capital purposes as fixed at Budget time must be reduced. I explained that the plans for economies to be effected would cover the whole range of current as well as capital expenditure by the Government and the various public bodies.
As regards the nature and extent of these economies, I would refer to my reply to Deputy Vivion de Valera's question on this subject to-day.