Thursday, 14 January 2016

Questions (94)

Olivia Mitchell

Question:

94. Deputy Olivia Mitchell asked the Minister for Finance the public expenditure growth, net of discretionary revenue measures, as defined under the European Union's expenditure benchmark, in each of the budgets from 2003 to 2007; and if he will make a statement on the matter. [1717/16]

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Written answers (Question to Finance)

The Expenditure Benchmark was introduced as part of the European Council Directive 2011/85 of 8 November 2011 (the so-called six-pack). These changes reformed both the preventive and corrective arms of the Stability and Growth Pact. In 2016 Ireland will for the first time be subject to the reformed requirements of the preventive arm of the SGP including the expenditure benchmark.

Table 1 details the ex-ante estimate of the corrected expenditure aggregate net of discretionary revenue measures (DRM) for each Budget 2003-2007 and the implied expenditure growth. The corrected expenditure aggregate is the adjusted general government expenditure used to assess compliance with the expenditure benchmark rule.

As these budgets predate the six pack it should be noted that a number of the variables used in adjusting the general government expenditure were not detailed at the time and have been estimated using the most relevant available data. It should also be noted that the general government expenditure estimates used are those in the published Budget Books, which were compiled under the ESA 95 framework. Final general government expenditure outturns compiled under the ESA 2010 framework are published by the CSO in the government finance statistics.

Table 1

-

Budget 2003

Budget 2004

Budget 2005

Budget 2006

Budget 2007

€billions

Budget Year - 1

 

 

 

 

 

General Government Expenditure

43.2

44.7

47.8

53.1

57.7

A. Corrected expenditure aggregate

39.6

41.9

45.9

50.8

55.6

Budget Year

 

 

 

 

 

General Government Expenditure

46.2

48.0

53.0

57.6

63.9

B. Corrected expenditure aggregate

43.1

45.5

50.2

55.0

61.4

C. Net discretionary revenue measures (DRM)

0.2

0.2

-0.6

-0.7

-0.9

D. Corrected expenditure aggregate net of DRM (B/C)

42.9

45.3

50.8

55.7

62.4

Expenditure growth (D/A)

8.2%

8.1%

10.7%

9.6%

12.2%