Denis Naughten
Question:22 Mr. Naughten asked the Minister for Finance his plans to introduce new procedures for the presentation of proposals for more meaningful and timely spending and taxation in Dáil Éireann. [18683/04]
View answerWednesday, 23 June 2004
Questions (42)
Written answers
The Government's spending proposals are outlined in the two Estimates Volumes. They are presented to Dáil Éireann in accordance with its Standing Orders. I normally present the pre-budget or abridged Estimates volume to Dáil Éireann approximately two weeks before budget day. For the past two years the proposed Estimates have been debated in the Dáil. The post-budget or Revised Estimates Volume is normally presented to the Dáil within eight weeks of the start of the fiscal year to which it relates. The Estimates by departmental Vote are then subject to individual scrutiny and approval by the relevant Oireachtas committee.
The financial statement on budget day outlines the main taxation measures proposed. Their details are contained in the budget book that is distributed to Members on budget day. I presented my first budget, budget 1998, on the first Wednesday in December so that the details were announced before the start of the fiscal year. I have continued the practice for the following six budgets. The budget and Finance Bill debates provide the House with the opportunity to give its views on these measures.
The above detail shows that the spending and tax proposals are presented to the Dáil in a timely manner. In other words, before the start of the fiscal year to which they relate. I have no plans to amend the arrangements.
I would like to update the House on some recent reforms, and ongoing consideration of proposals, to improve the presentation of information on departmental spending on services.
In my Budget Statement on 3 December 2003 I announced a major change in the financial treatment of capital spending through the introduction of rolling five year multi-annual capital envelopes. In implementing the new envelope system, Departments can carry over to the following year, subject to Dáil approval, any unspent Exchequer capital allocations, up to a maximum of 10% of each year's voted capital allocation. The roll-out of the capital envelopes — and the facility to carry-over savings — will mean changes in the presentation to the Dáil of the Estimates in respect of voted capital spending. The Finance Act 2004 provided for the new carry-over arrangement. Under the new arrangements the Dáil will be apprised of the amounts to be carried over in the AEV. It will be asked to approve the amounts on three separate occasions: the Appropriation Act of the carry-over year; a ministerial order that must be approved by the Dáil in the following year; and in the REV of the following year. The 2004 public capital programme included material on the multi-annual capital envelopes and more project level information on major capital projects.
Changes by way of tidying up or rationalisation of subheads and Votes were made in the REV in recent years in consultation, as appropriate, with the Committee of Public Accounts. The 2004 REV contained a revised presentation of the subheads in the Vote for the Department of Agriculture and Food. It reflects better the Department's main goals, as set out in its strategy statement. It also facilitates a match between the subheads of the Vote and the main programmes or strategic areas of the Department.
Work is ongoing on a pilot project under the aegis of my Department, involving the Departments of Agriculture and Food, Social and Family Affairs and Transport as pilot Departments. The purpose of the pilot project is to examine ways of improving the links between departmental strategy statements, business planning and resource allocation and performance measurement. The results will be evaluated. Consideration will be given to whether the approach should be mainstreamed across Departments. If it is considered that the pilot project should be further developed and mainstreamed, I will bring proposals to Government and to the Committee of Public Accounts. Drafting of the pilot project report commenced and I expect that it will be submitted for consideration in the near future.
Question No. 23 answered with QuestionNo. 8.