Dáil Éireann Debate, Thursday - 23 September 2021
58. Deputy John Lahart asked the Minister for Public Expenditure and Reform the cumulative additional spending his Department has sanctioned as a consequence of the pandemic since March 2020; and if he will make a statement on the matter. [45488/21]
View answerResponding to the impacts of Covid-19 has been a key priority for Government with significant supports put in place to respond to the pandemic. Across 2020 and 2021, Government will have made available over €31 billion for direct expenditure measures to support our people, businesses and key public services deal with the impacts of Covid-19.
Over €16½ billion was allocated during 2020 to Departments in response to Covid-19 following the onset of the pandemic.
For 2021, spending on Covid-19 related measures is currently expected to cost almost €15 billion. As outlined in the Mid-Year Expenditure Report, €10.7 billion of this amount has been allocated to Departments in Estimates voted by Dáil Éireann, with approximately €4 billion to be allocated including for measures announced in June under the Economic Recovery Plan.
Budget 2021 had set aside €12 billion for Covid-19 measures, with €6½ billion of this allocated to Departments and €5.4 billion initially set aside in reserve to allow Government respond to the evolving situation with the virus during the year. The increase in expenditure relative to the amount set aside in October last year is driven primarily by the higher than anticipated expenditure on the Covid-19 related income and employment support schemes following the resurgence of the virus in late 2020 and the decisions to extend the Employment Wage Subsidy Scheme and the Pandemic Unemployment Payment beyond the end of March. As set out in the Mid-Year Expenditure Report, it is now estimated that the cost of Covid-19 related supports provided through the Department of Social Protection will be c. €10 billion this year.
As set out in the Summer Economic Statement, inclusive of an amount of c. €0.2 billion in spending under the National Recovery and Resilience Plan, €7 billion is being made available for Covid-19 related expenditure, including a contingency fund, which will allow essential public health measures to continue in key areas next year and for a phased withdrawal of supports.
