Dáil Éireann Debate, Thursday - 23 September 2021
60. Deputy Niamh Smyth asked the Minister for Public Expenditure and Reform the estimated overall level of Covid-19 related public expenditure that he anticipates in 2022; and if he will make a statement on the matter. [45492/21]
View answerThe expenditure strategy for 2022 set out in July’s Summer Economic Statement provided for up to €8.1 billion in non-core, temporary spending under the overall expenditure ceiling. This provides €7 billion for Covid-19 related public expenditure measures during 2022, including approximately €0.2 billion expected to be spent under the National Recovery and Resilience Plan. In addition, the €1.1 billion available under the Brexit Adjustment Reserve has been included under 2022 spending on a technical basis and will likely be allocated across Budget 2022 and Budget 2023.
Of this €7 billion funding provision for Covid-19 related measures, €1.5 billion has been indicated for automatic stabilisers, primarily job-seekers payments, while €2.5 billion will be available to meet pressures that may remain in delivering public services in line with any continued public health requirements. Decisions on specific measures to be covered by this funding will be made as part of the Estimates process and, as in 2021, allocations to Departments for Covid-19 measures will be separately identified in the Expenditure Report. These amounts had been included in the Stability Programme Update published in April.
Given the continued uncertainty in relation to the virus and the requirement to ensure that supports are carefully withdrawn in a manner that supports recovery in the economy, the Summer Economic Statement included an additional €2.8 billion in funding that can be utilised to support a phased withdrawal of supports and also to make provision for a contingency reserve. This contingency reserve will allow Government flexibility to respond as the situation with the virus evolves.
