Dáil Éireann Debate, Thursday - 10 April 2014
67. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he is satisfied regarding the extent to which the various departmental targets in respect of curtailment of public expenditure have been achieved to date with particular reference to the ongoing need in 2015 and 2016; and if he will make a statement on the matter. [17195/14]
View answer68. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which he and his Department continue to remain in contact with all other Government Departments with a view to ensuring that expenditure remains in line with projections in the post-bailout context; and if he will make a statement on the matter. [17196/14]
View answer69. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he remains satisfied regarding the extent to which all Government Departments and their subsidiary bodies continue to maintain budgetary strategy in line with expenditure and reform guidelines; and if he will make a statement on the matter. [17197/14]
View answer70. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if targets in respect of expenditure cuts will remain unaltered in 2015 notwithstanding expected improved economic growth; and if he will make a statement on the matter. [17198/14]
View answer72. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he will set out his priorities in respect of both expenditure cuts and reform in the context of the compilation of budget 2015; and if he will make a statement on the matter. [17200/14]
View answer75. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which public expenditure targets identified in conjunction with the troika remain on course notwithstanding the exit from the bailout; and if he will make a statement on the matter. [17203/14]
View answer76. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which prudent public spending remains central to Government policy in the aftermath of the exit from the bailout; and if he will make a statement on the matter. [17204/14]
View answerI propose to take Questions Nos. 67 to 70, inclusive, 72, 75 and 76 together.
Ensuring the sustainability of the public finances is a prerequisite for economic stability and growth and therefore remains a central feature of Government policy. This Government has pursued a determined deficit reduction strategy in order to reduce the General Government Deficit below 3% of GDP by the target date of end-2015. This is a challenging target and one that is set against a difficult economic background which has required fiscal corrections in the form of significant consolidation on the expenditure and revenue fronts. The measures introduced by this Government have ensured Ireland's successful exit from the EU-IMF Programme of Financial Support for Ireland. To fully appreciate the scale of the expenditure consolidation it must be noted that it has been achieved in the context of increasing demands on public services in particular in the areas of Social Protection, Health and Education.
The 2014 Departmental expenditure allocations were set out in the Revised Estimates Volume 2014 (REV 2014), published on 18 December 2013. It is a matter for each Minister to ensure the prudent management of their respective 2014 expenditure allocations for their Department and all bodies and Offices that fall under the aegis of their Department. With regard to Departmental savings achieved to date, voted expenditure was well within budget for 2013. This effective management and delivery of savings is continuing in 2014 with the latest data on expenditure to end-March 2014 indicating that overall net voted expenditure was €261 million or 2.5% under profile, a year-on-year decrease of €631 million or 5.8%. In gross terms voted expenditure was €164 million or 1.2% under profile and was €452 million or 5.7% lower than the same period last year. The reduction in expenditure compared with the first quarter in 2013 illustrates that Departments are working to deliver the savings measures outlined in Budget 2014 and that the Government is firmly committed to meeting our deficit targets.
My Department has a number of measures in place to ensure that the budgetary targets are met. Departmental expenditure will continue to be monitored against the monthly expenditure profiles for each Department throughout the year. My officials are in regular communication with all Departments and Offices to ensure that expenditure is being managed and controlled effectively. Where necessary, my Department meets regularly with line Departments to review financial management. This type of strict expenditure management contributed to Ireland's successful exit from the EU-IMF programme of financial assistance on 15 December 2013. Following our exit from the programme, this same discipline regarding expenditure management is required to ensure the ongoing sustainability of the public finances and to ensure that all public expenditure targets continue to be met.
As I announced on Budget day last year, my Department is leading a Comprehensive Review of Expenditure. This review process which has recently commenced will enable consideration of expenditure options by Government and will help frame the Ministerial expenditure ceilings for 2015, 2016 and 2017 and Government decisions in that regard.
Good progress has been made to date with regard to the implementation of the Government's Public Service Reform Plan in Departments and Offices. The updated Public Service Reform Plan 2014-2016 was published in January this year. This plan aims to ensure that efficiencies and reformed work practices play a full part in contributing to the overall budgetary consolidation effort which is essential to achieving our annual deficit target.
