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Fiscal Policy

Dáil Éireann Debate, Tuesday - 27 November 2018

Tuesday, 27 November 2018

Questions (91)

Bernard Durkan

Question:

91. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform his preferred options to meet the ongoing social and economic requirements of the country in the context of current and capital expenditure in line with prudent management but placing sufficient emphasis on the important structures such as social housing; and if he will make a statement on the matter. [49180/18]

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Written answers

Ensuring our social and economic priorities are met depends on sound public finances and sustainable economic growth. To this end, the expenditure strategy for Budget 2019 is based on providing steady increases in public expenditure, which are underpinned by stable and predictable tax measures.  This requires a focus on affordable and sustainable improvements in services as well as effective prioritisation in the allocation of resources to deliver on key policy objectives.

Since 2015, Government has been in a position to provide for increases in expenditure each year. While these increases have impacted broadly across all sectors, a particular emphasis has been placed on key sectoral areas of Health, Housing, Education and Social Protection which support our social goal of moving towards a fairer and more inclusive society.

Of course, as we increase expenditure we must also strengthen our focus on managing resources in a prudent and efficient manner. This is a key responsibility of each Government Minister and Department. Officials in the Department of Public Expenditure and Reform are in regular contact with all Government Departments and Offices to ensure that expenditure is being managed within the overall fiscal parameters and there is reporting to Government each month on expenditure levels. The drawdown of funds from the Exchequer is monitored against published expenditure profiles and this information is published each month with the Exchequer Statement.

Responsible spending means we must also prioritise spending that mitigates risk, enhances the resilience of the economy and raises our growth capacity. In this context, the Government has set out its vision for Ireland over the medium term through the publication of Project Ireland 2040 and the National Development Plan.  This plan sets out a roadmap for increasing investment levels in Ireland in a sustainable manner and delivering modern public infrastructure over the coming years. This will further our social and economic goals by improving the lives of people throughout Ireland and allowing our companies and economy to continue to compete in a globalised world. 

Furthermore, it is also important that we continue to reform and enhance the way public services are delivered. This can be achieved by applying management accountability, raising efficiency, technological progress and other means. By better aligning inputs with outputs, we can ensure better value for taxpayers’ money and improve the efficiency with which these monies are allocated.  A number of initiatives are in place in my Department and across the system that aim to do this, such as Performance Budgeting, Equality Budgeting, the Spending Review process and Social Impact Assessments.

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