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Public Expenditure Policy

Dáil Éireann Debate, Thursday - 5 March 2020

Thursday, 5 March 2020

Questions (137, 141, 145)

Bernard Durkan

Question:

137. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the main aspects of the benefited influence of expenditure and reform to the citizenry over the past three years; and if he will make a statement on the matter. [3114/20]

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Bernard Durkan

Question:

141. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which public expenditure and reform has been instrumental in the delivery of results to the country and the citizenry in the past eight years; and if he will make a statement on the matter. [3118/20]

View answer

Bernard Durkan

Question:

145. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which the performance of his Department has contributed to economic recovery here; the way in which this compares to other jurisdictions throughout the EU in the eurozone and elsewhere; and if he will make a statement on the matter. [3122/20]

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Written answers

I propose to take Questions Nos. 137, 141 and 145 together.

Following a period of consolidation, it has been possible since 2015 to provide for moderate, sustainable expenditure growth on an annual basis. The Government has prioritised spending that mitigates risk, enhances the resilience of the economy and raises our growth capacity whilst making incremental and sustainable improvements in public services. The steady growth in expenditure in recent years reflects the significant effort made by the Government to moderate the level of expenditure increases and to secure a sustainable long-term path to growth.

In further support of this, a wide range of budgetary reforms have been implemented in the last number of years to improve transparency and accountability around the Budget process, while also facilitating best economic practice. This includes initiatives such as performance and equality budgeting and new publications such as the Summer Economic Statement and the Mid-Year Expenditure Report.

Sound public finances are necessary to underpin sustainable economic growth in the context of our economic recovery and to progress towards our social and economic goals. This requires effective and efficient management of overall expenditure. To support this goal, my Department has been engaging for the last three years with a range of Departments on the Spending Review process. The aim of this process is reinforce a systematic analysis of existing spending programmes, focusing on an assessment of efficiency, effectiveness and sustainability. Budget 2020 also saw the publication of the first ‘Citizen’s Guide to the Budget’; a short, accessible document which put the Budget in simple terms, in order to make the process as accessible as possible. This document also sets out the services that will be delivered to the people of Ireland in an accessible way. For example, in 2020:

- 108,000 children will be enrolled in the ECCE programme;

- 137,000 farmers will be supported through various agricultural schemes;

- 355,000 people will be provided with illness, disability and carer's benefit; and

- 677,000 people will be provided with pension payments.

Over the last five years, Irish General Government expenditure as a proportion of GNI* has moved to be broadly in line with the EU average figures for General Government expenditure as a percentage of GDP. In terms of capital expenditure, the overall public capital allocation for 2020 is €8.2 billion. At this level gross voted capital investment in 2020 will reach c. 4 percent of national income (GNI*) compared to an EU average in recent years of 2.9 percent (GDP).

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