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Covid-19 Paindéim

Dáil Éireann Debate, Tuesday - 17 November 2020

Tuesday, 17 November 2020

Questions (308, 310, 311, 313, 314, 316)

Bernard Durkan

Question:

308. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he remains satisfied that adequate measures have been taken in respect of public expenditure and reform to withstand the ongoing impact of Covid-19; and if he will make a statement on the matter. [37068/20]

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Bernard Durkan

Question:

310. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which departmental expenditure at present has indicated potential pressure for remedial action as Ireland progresses towards 2021; and if he will make a statement on the matter. [37070/20]

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Bernard Durkan

Question:

311. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he and his Department have identified potential threats to remaining within budget throughout various Departments in the course of the coming year; and if he will make a statement on the matter. [37071/20]

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Bernard Durkan

Question:

313. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he has developed a mechanism in his Department to identify possible overruns in terms of expenditure in sufficient time to correct and address them; and if he will make a statement on the matter. [37073/20]

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Bernard Durkan

Question:

314. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which he remains satisfied that adequate monitors exist in respect of current spending in Ireland as compared with other jurisdictions within the European Union; and if he will make a statement on the matter. [37074/20]

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Bernard Durkan

Question:

316. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if specific potential expenditure overruns have been identified by his Department if so, his plans to address matters arising; and if he will make a statement on the matter. [37076/20]

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Written answers

I propose to take Questions Nos. 308, 310, 311, 313, 314 and 316 together.

Managing the delivery of public services within allocations is a key responsibility of each Minister and Department. There are important measures in place at all times to ensure that our budgetary targets are being met. These measures continue to be in place for all public expenditure, including core expenditure as well as additional expenditure allocated as part of the response to Covid-19. As is usual, my Department is in regular contact with all other Departments and offices to ensure that all expenditure is being managed within the overall fiscal parameters. There is regular reporting to Government on expenditure levels.

In terms of other EU jurisdictions, in the five years prior to the Covid-19 pandemic, Irish General Government expenditure as a proportion of GNI* had 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 set out in the 2020 Revised Estimates Volume was €8.2 billion. At this level, core gross voted capital investment in 2020 was projected to reach c. 4 percent of national income (GNI*) compared to an EU average in recent years of 2.9 percent (GDP). While these indicators have been impacted by the Covid-19 pandemic, they give an indication of Ireland’s position relative to other EU countries in terms of core expenditure.

As set out in the most recent Fiscal Monitor, published by the Department of Finance, total gross voted expenditure at end-October 2020 was €65,547 million. This is €8,604 million, or 15.1% ahead of profile. It should be noted however, that expenditure profiles for the year were published in February and are based on the expenditure allocations set out in the 2020 Revised Estimates Volume. This means that the impact of additional resources allocated in respect of Covid-19 are not reflected in these profiles. As such, spending can be expected to run significantly ahead of profile for the remainder of the year. Gross voted current expenditure of €60,000 million, is €8,662 million, or 16.9% above profile. Gross voted capital expenditure of €5,547 million, is €58 million, or 1% below profile and up €886 million, or 19% on October 2019.  

The vast majority of identified overruns in 2020 to date relate to expenditure allocated in response to Covid-19. Current expenditure in the Department of Health is ahead of profile by €1.36 billion at end October 2020. This is due to the drawdown of funds to the HSE, to support maximising capacity within the system and to allow for the purchase of necessary equipment such as PPE. The Department of Social Protection is ahead of profile by almost €6.9 billion at this point in the year. This is due to payments introduced in respect of Covid-19 to support employees and businesses. There is a Covid-19 related impact on the Department of Transport, for which current expenditure is €307 million ahead of profile at end October. This is due to the drop in passenger numbers and associated revenue as a result of public health measures.

Gross voted current expenditure in Education is ahead of profile by €83 million. This relates to higher than anticipated drawdown in relation to teacher salaries and pensions, as well as payment of €66 million in Covid-19 grants to primary and post-primary schools in August. In terms of core current spending, expenditure on Asylum Seekers Accommodation is over profile by approximately €74 million at end-October due to underlying financial pressures, linked to the numbers to be accommodated.  Expenditure has also been impacted by the Covid-19 emergency, with additional measures being implemented including the provision of self-isolation facilities.

Looking at capital expenditure, the impact of Covid-19 can also be seen. Of the 16 vote groups which have capital allocations, 12 are below profile for capital expenditure at this point in the year. Capital expenditure in the Department of Enterprise, Trade and Employment is ahead of profile for end-October by €587 million. This relates to the additional funding which was allocated in light of the impact of Covid-19 on businesses. The Department of Education is ahead of profile on capital expenditure by €91 million. The main driver of this is the issuing of additional minor works grants in light of Covid-19, as well as bringing these grants forward to July and August for primary and post-primary schools. €10 million has also been provided for Student Devices.

The Government has allocated significant additional resources to Departments in response to Covid-19. Expenditure Report 2021 set out total gross voted expenditure of €87.1 billion for 2020, with additional expenditure of €16.7 billion primarily driven by Covid-19. These allocations are being made in the usual way, with Estimates agreed by Government and voted on by the Dáil. A number of Revised Estimates and Further Revised Estimates have been approved by the Dáil in recent weeks and months to give effect to these increased allocations for 2020. A number of Supplementary Estimates have also been presented to the Dáil in the last number of weeks and work is currently ongoing to agree the last number of Supplementary Estimates for 2020. 

Question No. 309 answered with Question No. 303.
Questions Nos. 310 and 311 answered with Question No. 308.
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