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Expenditure Reviews

Dáil Éireann Debate, Wednesday - 24 October 2018

Wednesday, 24 October 2018

Questions (138, 143, 145, 147, 149)

Bernard Durkan

Question:

138. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which all Departments remain compliant with the criteria laid down in respect of public expenditure and reform; and if he will make a statement on the matter. [44177/18]

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Bernard Durkan

Question:

143. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which his Department can ensure best value for money in terms of current and capital expenditure throughout the course of 2019; and if he will make a statement on the matter. [44182/18]

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Bernard Durkan

Question:

145. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which he remains satisfied regarding the meeting by various Departments of the targets set by his Department in each of the past two years to date; and if he will make a statement on the matter. [44184/18]

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Bernard Durkan

Question:

147. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he continues to monitor current and capital spending; the degree to which both categories remain within tolerance levels; and if he will make a statement on the matter. [44186/18]

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Bernard Durkan

Question:

149. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he has identified breaches in the norms set by his Department in respect of public expenditure and reform which need to be addressed in the long and the short-term; and if he will make a statement on the matter. [44188/18]

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Written answers

I propose to take Questions Nos. 138, 143, 145, 147 and 149 together.

Managing the delivery of public services within allocations forms a key part of the responsibilities of every Minister and Department. My own Department is in regular contact with all other Departments and Offices to ensure that expenditure is being managed within the overall fiscal parameters. The drawdown of funds from the Exchequer is reported on each month against expenditure profiles in the Fiscal Monitor published by the Department of Finance.

The management of expenditure within the overall fiscal parameters over the last number of years has played a key role in ensuring that we have continued to meet out fiscal targets. However, given the scale of Government expenditure - €61.8 billion in aggregate for gross voted expenditure in the Revised Estimates Volume (REV) 2018 - and the cash basis of Government accounting, the need for Supplementary Estimates can arise for a number of reasons, including policy decisions, timing issues, and overspends. They are a budgetary tool that allows for the proper alignment of funding allocations with planned expenditure. Of course, they can only be allowed where they can be accommodated within the overall fiscal parameters.

As set out in the most recent Fiscal Monitor, total gross voted expenditure at end-September 2018 was €44,874 million, which is broadly on profile. Net voted expenditure of €36,042 million was €45 million below profile with net voted spending in 14 out of 17 Vote Groups being below profile. As outlined in the Fiscal Monitor, current spending is 0.6 per cent ahead of profile, with the main driver of this variance being Health expenditure.

As outlined in Expenditure Report 2019, as a result of policy decisions, including in relation to the provision of a 100 per cent Christmas Bonus to social welfare recipients, additional capital for the Department of Housing and expenditure pressures in particular in the Health sector, the gross voted expenditure outturn for the year is now estimated at €62.8 billion, an increase of €1 billion relative to the gross voted expenditure amount in REV 2018. A key element of the increase in gross voted expenditure is an expenditure overrun in Health of €645 million, with an additional €55 million being required for a shortfall in receipts.  As I outlined in my statement to the Dáil on Budget day, I continue to look at choices that we have to make in healthcare regarding how we can accompany all time high levels of investment with improved governance, accountability, effectiveness and value for money.

A number of measures are in place to support value for money in terms of capital and current expenditure. During 2018, my Department has engaged with a range of Departments on year two of the Spending Review process, with a view to reinforcing a systematic analysis of existing spending programmes, focusing on an assessment of efficiency, effectiveness and sustainability. In the last two years of the Spending Review process, over 50 analytical papers have been produced. These papers:

- Provide an evidence base in relation to Departmental spending that informs the choices made in relation to budgetary allocations;

- Identify areas of existing expenditure that require ongoing analysis where issues emerge during the Spending Review; and

- Outline key sectoral trends and provide analysis with international comparisons on expenditure levels and efficiency.

Building on the output of the Spending Reviews in 2017 and 2018, the intention is that the Spending Review in 2019 will once again focus on an assessment of efficiency, effectiveness and sustainability of specific spending programmes. The Spending Review in 2019 will continue to support the development of better policy options for Government by broadening and deepening the knowledge of a range of complex policy areas to facilitate future discussions regarding the evolution of Government expenditure.

Turning to capital expenditure, the National Development Plan (NDP) has set an investment in infrastructure of almost €116 billion over the ten year period to 2027. Such a level of investment requires a strong framework to drive its implementation and increased transparency on the projects and programmes being supported by this investment. In this regard, a high-level Project Ireland 2040 Delivery Board has been established.  The Project Delivery Board will continue to provide strategic direction and leadership to the NDP and National Planning Framework (NPF) implementation process. The Delivery Board will monitor and oversee implementation structures and performance across the various sectors to ensure a co-ordinated and collaborative whole of Government approach to NDP and NPF delivery.

In relation to public service reform, Our Public Service 2020 is the framework for reform and innovation in the public service which was launched in December 2017. This phase of public service reform focuses on supporting sustainable, continuous progress across the public service. It aims to build a stronger public service and to deliver better quality services to the Irish public. 

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