The Summer Economic Statement recognised that the implementation of the budgetary measures to return the public finances to a sustainable level requires the efforts of all public service bodies to seek savings and pursue efficiencies.
It is consistent with the principle of the application of the expenditure benchmark on a fair and transparent basis across the whole of general government, as outlined in the Medium Term Budgetary Framework, that savings generated by sub-sectors/entities should stay with them and can be used to fund additional expenditure while staying within the relevant Ministerial Expenditure Ceiling. This principle, which incentivises the identification of efficiencies and savings, applies in this case.
Consequently any savings arising under the new framework agreement would not impact the estimate of net fiscal space but would rather be available for delivery of services by the Department of Health.