Dáil Éireann Debate, Thursday - 18 April 2019
9. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which his Department continues to monitor all aspects of public expenditure with a view to ensuring the utilisation of reform to control spending; and if he will make a statement on the matter. [18025/19]
View answerI seek to ascertain the nature and extent of the use of reform to control - not restrict - public expenditure that has already been flagged.
As set out in the most recent fiscal monitor published by the Department of Finance, total gross voted expenditure at the end of March was €15.04 billion. This is €343 million, or 2.2%, below profile. Gross voted current expenditure is €14.167 billion, which is €245 million, or 1.7%, below profile. Of the 17 ministerial Vote groups, 14 were below profile on current expenditure to the end of March. Gross voted capital of €872 million is €98 million, or 10.1%, below profile but is up €105 million on March 2018.
Overall, out of all the different Votes that exist within the Government, the vast majority are below profile. Total gross expenditure for both capital and current was also below profile at the end of the first quarter. That said, given my experience in the second half of last year, I will be very careful and cautious about how this is managed, particularly in the run-up to the summer. While we have seen total Government spending come in below where we estimated it would be, I will be taking great care to ensure that this is maintained as we move through the year.
To what extent does the Minister remain satisfied that sufficient scope is built into the budgetary situation to enable him to take any steps that might be necessary in the event of changing economic circumstances, whether as a result of Brexit or otherwise? Is he satisfied that the public finances remain sufficiently protected in that kind of scenario?
Yes, I am at present. The reply I would give is similar to that I gave Deputy Broughan. The Deputy asked where matters stand in the context of various programmes and I indicated that they are all funded and inside the parameters outlined in the budget. We have the ability to respond to different shocks with which we might have to deal. We have to keep on building up that ability, however. Clearly, the larger our surplus, the better we are able to withstand a downturn. Having a rainy day fund in place really helps. Ensuring that there is less of a relationship and a smaller link between the State and the banking sector is invaluable. While progress has been made, that progress is incomplete. There is more that needs to be done. Ensuring that we are careful with how we manage public expenditure during the year is a really big part of that.
In the immediate past, reform within the public sector was responsible for making considerable savings in a way that had not been done before. Is the Minister satisfied that scope remains for the utilisation of reforms within the system to achieve the benefits that he requires and the provisions he foresees as being necessary in the future?
I do. In particular, I am of the view that technology can play a very major role in further improving how public services are delivered. Each year, I meet all of our public and civil servants who are involved in the use of digital technology to improve how people can access public services. It is well appreciated that the Revenue Commissioners have done a really good job in that regard and I am determined to ensure that the various Departments continue their work in this area. The work that is under way for the further roll-out of the affordable childcare scheme later in the year will show how use of technology can improve people's ability to access public services, which can make a difference to their lives.
