Dáil Éireann Debate, Tuesday - 27 November 2018
197. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform his Department's general policy on Supplementary Estimates which he plans to introduce for 2018; his views in general terms on proposed Supplementary Estimates for Votes 20, 24, 31, 32, 35, 37, 38 and 40; and if he will make a statement on the matter. [49479/18]
View answerDue to the scale of Government expenditure 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. Supplementary Estimates are an important element of expenditure management, allowing for the proper alignment of resources within allocations. However, they can only be allowed where they can be accommodated within the overall fiscal parameters.
As outlined in the Expenditure Report 2019, at the end of September PRSI receipts were over €150 million ahead of profile, and it is currently projected that PRSI receipts will finish the year c. €250 million higher than projected in the Revised Estimates Volume (REV) 2018. In addition, other Departmental receipts, or appropriations-in-aid, are anticipated to finish the year ahead of profile. It is because of this additional revenue, along with higher than anticipated Exchequer tax receipts, higher-than-projected non tax revenues, and lower non-voted current expenditure, that the increase in gross voted expenditure to be provided by way of Supplementary Estimates can be accommodated.
The position in relation to Supplementary Estimates takes into account the most up to date trends in Departmental expenditure and receipts. Last week, Supplementary Estimates were presented to Dáil Éireann and referred to Committee in respect of the following Vote groups:
- Agriculture, Food and the Marine (Technical);
- Business, Enterprise and Innovation (Technical);
- Children and Youth Affairs (Substantive);
- Defence (Substantive);
- Employment Affairs and Social Protection (Substantive);
- Foreign Affairs and Trade (Substantive);
- Public Expenditure and Reform – Office of Public Works (Substantive) and Superannuation (Technical); and
- Transport, Tourism and Sport (Substantive).
The ceiling for Vote 31 (Transport, Tourism and Sport) is broadly in line with that set out in the Expenditure Report. The Supplementary Estimate for Vote 32 (Business, Enterprise and Innovation) is of a technical nature, to allow for reallocation of funding within the Vote. In relation to Vote 35 (Army Pensions) the additional expenditure required to accommodate the Supplementary Estimate for Army Pensions is expected to be offset by underspends elsewhere in the Defence Vote Group.
A provision for a 100% Christmas Bonus was made in Expenditure Report 2019. A Supplementary Estimate of €139 million is required by Vote 37 (Employment Affairs and Social Protection) in order to meet the Exchequer element of this bonus. Finally, while Vote 40 (Children and Youth Affairs) was below profile at the end of October there are pressures emerging on the Community Childcare scheme. The Department is looking to offset the increased costs arising to the greatest extent possible.
Expenditure Report 2019 outlined that substantive Supplementary Estimates would also be required for the following Vote groups:
- Education and Skills;
- Justice and Equality;
- Health; and
- Housing, Planning and Local Government.
Arrangements are being made to present Supplementary Estimates from these Vote groups to Dáil Éireann in the coming days.
