Vol. 478 No. 6
40 Mr. Callely asked the Minister for Finance the likely outcome of public spending in 1997 based on current trends; whether it is likely to be close to 10 per cent which is contrary to the 2 per cent as referred to in the programme, A Government of Renewal; and if he will make a statement on the matter. [11802/97]
The Revised Estimates for Public Services published on 26 March provide for an increase in gross non-capital supply services expenditure in 1997 of 7 per cent in nominal terms and 4.7 per cent in real terms over the adjusted 1996 provisional outturn. The 1996 outturn was adjusted to exclude £98 million in rate support grant funding which was taken off the 1997 allocation as part of the new local authority financing arrangements in order to give a proper basis for calculating the increase between the two years.
While it is too early to give a definitive view on the likely 1997 outturn, I am confident that spending remains on target. The trend in spending will be closely monitored throughout the year. The Government will seek to ensure that any overruns which emerge will be met from within the departmental allocations already agreed. The Government's determination to ensure that spending remains on course this year is evidenced by the fact that it has agreed measures to offset the full additional £49 million cost of the nurses' pay deal. The Government's position on other outstanding pay claims in the public service is that they should be settled within the cost parameters of the PCW for which provision is already included in this year's Estimates.
