asked the Minister for Finance the total amount of Government expenditure and other related arrangements the Government have introduced to increase employment.
Ceisteanna—Questions. Oral Answers. - Promotion of Jobs.
19.
The general strategy of the budget which I introduced last April was designed to improve the growth performance of the economy and to safeguard and increase employment. The combined capital and current budgets this year amounted to almost £920 million, or some £115 million more than actual expenditure in 1971-72. This substantial increase in expenditure, to be financed without recourse to new taxation, was designed to stimulate growth and economic activity generally.
The public capital programme forms a major part of national investment and, therefore, it directly promotes growth of employment. This year's programme was settled in April at £251.3 million which represented a large increase over the 1971-72 programme which itself had been specially expanded in order to help employment. In August I increased this year's programme by a special addition of £4.8 million to give a further stimulus to output and employment in the building and construction industry. This increase brought the total capital programme to £256 million or £42 million more than expenditure in 1971-72.
On the non-capital side, the total budget figure for expenditure was just over £650 million. I explained in my budget speech that, being faced with the competing requirements of acting to contain inflationary pressures or stimulating the growth performance of the economy, the Government decided to opt for growth. The level of expenditure was, therefore, fixed by reference to our economic requirements—including the need to help employment—and was not cut back to the estimated yield of revenue. There were no increases in taxation and the deficit in the current budget was, therefore, to be financed mainly by borrowing. The intention was that the budget measures would restore us to our potential growth path of 4 per cent or more per annum. All the indications are that this objective will be realised.
Finally, I might mention that—as the Taoiseach indicated to the House on 25th October—in a further measure to help in the creation of jobs the Industrial Development Authority have been authorised to step up their promotional activities.
The Minister has given us a very comprehensive reply. Can he tell us what increase there has been in employment as a result of that dramatic and huge injection of money into the economy? Can the Minister spell it out in terms of increased jobs?
I cannot give the Deputy that information offhand but even if I could the answer would be misleading, as the Deputy appreciates.
I am not going to charge the Minister with misleading the House.
I have already explained to the Deputy at considerable length why it would be misleading the House. I do not propose to bore the House by repeating my statement.
In his answer the Minister emphasised the economic requirements. Was he using the words "economic requirements" as opposed to "financial requirements"? Is he saying the budget was more an economic budget than a financial one?
Yes, that would be true.