Dáil Éireann Debate, Tuesday - 29 September 2015
306. Deputy Peadar Tóibín asked the Minister for Public Expenditure and Reform to provide a detailed breakdown of the specific expenditure measures to be provided for in health and education as part of the demographic provision in budget 2016. [33189/15]
View answerThe Spring Economic Statement (SES) and the corresponding Stability Programme Update (SPU) outlined that fiscal space of the order of €1.2 to €1.5 billion is expected to be available for Budget 2016 split evenly between expenditure increases and tax reductions.
I have indicated previously that this would allow Government to target an increase in government expenditure of between €600m and €750m in 2016 relative to the 2015 spend. This provides scope to deal with underlying demographic and spending pressures, and target enhancements in key public services.
In addition, as outlined in the SES, the range of €1.2 to €1.5 billion does not take into account re-allocation within expenditure funded by savings from efficiencies and policy measures. For example, Live Register savings over and above those related to the cycle from lower unemployment as a result of existing activation measures will be available to fund new measures.
Some increases are already signalled for 2016 - the expenditure ceilings between 2015 and 2016, set out in Comprehensive Expenditure Report 2015-2017, already reflect certain expenditure needs including demographics in Health, Education and Social Protection.
Government policy on new Budget 2016 measures, including those specifically relating to Health and Education, is currently being finalised and will be announced as part of the Budget on the 13th of October 2015.
