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Public Expenditure Policy

Dáil Éireann Debate, Thursday - 25 February 2021

Thursday, 25 February 2021

Questions (92, 94, 97, 98)

Bernard Durkan

Question:

92. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which all Departments and subsidiary agencies continue to observe, in letter and in spirit, the principles of reform as a means of reducing costs; and if he will make a statement on the matter. [10894/21]

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Bernard Durkan

Question:

94. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the Departments in respect of which greatest emphasis is placed on reform as a means of achieving efficient and effective use of public funds while at the same time meeting requirements; and if he will make a statement on the matter. [10896/21]

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Bernard Durkan

Question:

97. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he has kept under observation Departments or bodies under their aegis that have a tendency to overspend; if particular action is needed in this regard; and if he will make a statement on the matter. [10899/21]

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Bernard Durkan

Question:

98. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he remains satisfied that public expenditure remains within acceptable guidelines; if corrective measures are needed at this stage; and if he will make a statement on the matter. [10900/21]

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Written answers

I propose to take Questions Nos. 92, 94, 97 and 98 together.

An overall Government Expenditure Ceiling of €87.8 billion was outlined in the Revised Estimates for Public Services (REV) for 2021. Nearly €82.4 billion of this has been allocated at a departmental level, with €5.4 billion set aside in reserve to respond to the impacts of Brexit and Covid-19 as required. It is a key responsibility of every Department and Minister to manage expenditure within their respective allocations. This is the case for all public expenditure, including core expenditure as well as additional expenditure allocated as part of the response to Covid-19.

My Department is in regular contact with all other Departments and offices to ensure that expenditure is being managed within the overall fiscal parameters and there is regular reporting to Government on expenditure levels. The drawdown of funds from the Exchequer is reported on each month against expenditure profiles in the Fiscal Monitor published by the Department of Finance.

A range of budgetary reforms have been implemented in the last number of years to improve transparency and accountability around the Budget process and focus attention on achieving value for money. This includes initiatives such as Performance Budgeting, which seeks to shift focus away from simply looking at the quantum of spend towards examining what is being delivered through public expenditure and equality budgeting as a way of approaching and understanding the budget as a process that embodies long-standing societal choices about how resources are used, rather than simply a neutral process of resource allocation.

These reforms also include publications such as the Summer Economic Statement and the Mid-Year Expenditure Report. Further to this, a new three year cycle of spending reviews began last year and my Department will continue to engage with a range of Departments on the Spending Review process to reinforce a systematic analysis of existing spending programmes, focusing on an assessment of efficiency, effectiveness and sustainability.

Looking forward, the Programme for Government commits to continuing reform and improvement of the Budgetary process and proposes that each Minister will be required to produce service improvement and reform plans in conjunction with my Department, within an overall context of an enhanced focus across Government on issues of well-being. In implementing this reform, my Department will look to build on the budgetary reforms already in place and the significant work on public service reform already completed.

Adopting this approach will ensure stronger dialogue in this House on key elements of budgetary policy and will help to facilitate the continued development of budgetary decisions, consistent with the maintenance of stable public finances.

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