Dáil Éireann Debate, Wednesday - 6 July 2016
179. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which various measures taken to protect the economy through the medium of public expenditure, curtailments and reform have addressed the issues and delivered results for the economic benefit of the country; and if he will make a statement on the matter. [20033/16]
View answer180. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects to be in a position to ease the impact of cutbacks necessitated by the economic downturn throughout the public sector over the next five years; and if he will make a statement on the matter. [20034/16]
View answerI propose to take Questions Nos. 179 and 180 together.
The key focus of fiscal policy over the last number of years has been to reduce the General Government Deficit in line with the targets set under the Excessive Deficit Procedure. The management of public expenditure has played an important role in ensuring that these key fiscal targets have been achieved. The EU Commission has recommended that Ireland has met the requirements to exit the corrective arm of the Stability and Growth Pact at the end of 2015.
Public Service Reform was a key element of the Government's response to the crisis and the strategy for recovery. The reforms implemented over the past five years enabled us to maintain and improve public services in the face of the necessary reduction in staff numbers and budgets, at a time of increased demand for public services. A second Public Service Reform Plan (2014-2016) was published in January 2014. While maintaining an emphasis on efficiency and reducing costs, this Plan puts a particular focus on improved service delivery and achieving better outcomes. While the economy is recovering, the need to ensure that public expenditure increases are sustainable means that reform of the Public Service will continue to be a priority in 2016 and beyond.
Budget 2015 marked the point where expenditure reductions were no longer required to meet our fiscal targets. Gross voted expenditure has grown by an average of 2½% annually in since the end of 2014. The fiscal projections in the Summer Economic Statement (SES) are consistent with the Programme for a Partnership Government commitment to spend at least €6.75 billion more on public services in 2021 compared to 2016. Investment in public infrastructure is vital for the medium and long-term competitiveness of the economy as well as for underpinning social cohesion through the provision of vital services to the public such as schools, public transport and housing. A cumulative additional €5.1 billion is allocated to capital spending in the SES over the period to 2021, in addition to the increases set out in the Public Capital Plan published in September last year.
