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Public Expenditure Policy

Dáil Éireann Debate, Thursday - 24 November 2016

Thursday, 24 November 2016

Questions (28)

Seán Sherlock

Question:

28. Deputy Sean Sherlock asked the Minister for Public Expenditure and Reform his views on the need for future Supplementary Estimates; if he will use such a mechanism for 2017; and if he will make a statement on the matter. [36580/16]

View answer

Written answers

Given the scale of gross voted expenditure, €58 billion in aggregate for 2017, the cash basis of Government accounting, and the funding implications that unexpected events can have on expenditure requirements, the need for Supplementary Estimates can arise for a number of reasons:

- Policy - the Government may decide, taking into account developments during the year, that it is appropriate to allocate additional funding to a certain area, and to propose this to the Dáil; 

- Overrun - there may be an overrun on a Vote within a Vote Group, which requires additional funding to deal with the overspend.  The net impact on overall spending of these overruns can be offset, in the first instance, either fully or partially by expected savings that will arise on other Votes within the relevant Vote Group;

- Timing - events may occur which change the timing of certain receipts or payments, and change the amount that is required to be spent during the present year; or

- Technical - there may be shifts in expenditure requirements between various areas within a Vote which, although they do not involve a net increase in the total level of spending, may be appropriate to bring to Dáil attention.

Therefore, Supplementary Estimates play an important role in achieving a proper alignment of funding allocations with planned expenditure.  However, with Ireland operating under the fiscal rules that apply under the preventive arm of the Stability and Growth Pact, Supplementary Estimates in 2017 can only be permitted where they can be accommodated within the requirements of the fiscal rules in terms of the projected structural budget balance and application of the Expenditure Benchmark.

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