Dáil Éireann debate -
Wednesday, 24 May 2000

Vol. 519 No. 6

Written Answers. - Capital Expenditure.

Derek McDowell

Question:

133 Mr. McDowell asked the Minister for Finance the way in which the figures for capital expenditure, as set out in Table 1 of budget 2000 statistics and tables, can be reconciled with the figures for Exchequer expenditures under the national development plan; if he will provide details of such reconciliation for each year from 2000 to 2002 in terms of (i) any capital expenditure as set out in Table 1, which does not come under the NDP, (ii) any Exchequer expenditure under the NDP which is not included in the estimates for capital expenditure in this table, (iii) any assumptions concerning changes in prices which may be pertinent and (iv) such other factors which can explain the relationship between the figures for Exchequer expenditure in the national development plan and those in the Stability Programme. [14619/00]

Minister for Finance (Mr. McCreevy)

The national development plan 2000-2006 provides the overall framework for Irelands economic and social development over the medium term. It sets out development strategy supported by a multi-annual investment commitment. The national expenditure in the NDP was drawn up in constant 1999 prices. The Deputy will be aware that the operational programmes arising from the NDP will provide more detailed information on Exchequer spending in current prices for each year 2000 to 2006, based on 2000 estimate price assumptions. These operational programmes are the subject of negotiations with the European Commission in relation to the EU co-financed aspects and will be made publicly available in the near future.

The Deputy will understand that the NDP is a framework document. As it is being implemented, the Government may wish to monitor and revise priorities in line with economic and social circumstances.

Table 1 of the budget 2000 statistics and tables sets out the post-budget 2000 voted capital estimate for 2000 together with corresponding no-policy-change projections for 2001 and 2002. These are in current prices.

The 2000 voted capital estimates have since been updated in the 2000 revised estimates for Public Services. The 2000 gross voted capital allocation, as published in the revised estimates, is £3,257 million. Of the order of 80% of the 2000 voted capital allocation is plan-related expenditure the remaining 20% comprising spending on areas such as prisons building and spending by Office of Public Works would not come under the plan. Taking into account the impact of price inflation, the 2000 revised estimates comfortably provide for the Exchequer capital requirements outlined in the NDP for 2000.

The projections for 2001 and 2002 are being updated and extended to 2003, as part of the multi-annual budgetary process. In determining the multi-annual capital investment requirements of Departments, full account will be taken of the funding requirements of both the national development plan and Departments' other capital requirements over the period.

The expenditure assumptions underlying the stability programme are fully consistent with the voted capital projections as published on budget day and the national development plan.

In conclusion, I assure the Deputy that the Government will continue to ensure that the Exchequer expenditure requirements of the NDP are fully provided for in settling voted capital projections for the period 2001-2003.