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Public Expenditure Policy

Dáil Éireann Debate, Thursday - 26 October 2023

Thursday, 26 October 2023

Questions (165, 167, 172)

Bernard Durkan

Question:

165. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the extent to which he continues to liaise with all Departments and their subsidiaries and agents with a view to achieving the maximum in terms of efficiency and delivery in line with best international practice; and if he will make a statement on the matter. [47228/23]

View answer

Bernard Durkan

Question:

167. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the degree to which he expects his Department to be in a position to positively influence economic growth while retaining prudent policy measures; and if he will make a statement on the matter. [47230/23]

View answer

Bernard Durkan

Question:

172. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the extent, if any, to which reforms throughout the public sector are likely to yield improved economic performance in the forthcoming year; and if he will make a statement on the matter. [47237/23]

View answer

Written answers

I propose to take Questions Nos. 165, 167 and 172 together.

The Government's approach to public expenditure policy is set out in the Medium Term Expenditure Strategy (MTES) published in the Summer Economic Statement in 2021. The objectives of the strategy are twofold, to ensure that the level of core expenditure growth is sustainable over the long-term and that investment in expenditure protects and delivers improvements to public services. The framework under which the MTES is implemented must be responsive to the economic landscape and is reviewed throughout the year as part of the whole of year budget process.

A strong public service that delivers core public services and prudent investment in our public infrastructure contributes positively to the economy as Government has done over the past decade. The careful management of our economy and the public finances in recent years has allowed the Government to;

• Provide increased resources for core public services as demand for services grows, investing in a better quality of life for Irish people,

• Deliver record investment in essential infrastructural projects through the National Development Plan; supporting employment, economic development and regional growth,

• Put in place considerable supports for households and business to help them overcome the Covid pandemic, and most recently the price pressures arising from global inflationary pressures.

The Government did this while also ensuring the public finances remained in a sustainable position without impinging on our economic prospects and economic growth. Budget 2024, which delivered an overall expenditure package in services and infrastructure of €12.3 billion, continues the trend of this sustainable investment in society.

In terms of the reform and management of public finances and liaising with Departments there are a number of budgetary process in place, in line with international best practice, that broaden the approach to appraising, implementing and reviewing policies. These include;

• the annual Spending Review process,

• Wellbeing and Equality Initiatives,

• Performance Budgeting and

• Green Budgeting.

These are in addition to the ongoing and regular expenditure management of agreed Departmental ceilings which are the individual responsibility of each Department and Minister. My Department engages on an ongoing basis with all Departments to ensure budgetary targets continue to be met and that expenditure is managed within overall fiscal parameters. Drawdowns of funds are monitored against published expenditure profiles and there is regular reporting to Government on these.

Additionally, I would also advise that my department engages regularly in international fora such as OCED working groups and committees to share knowledge and discuss best practice around budgetary reform and ensuring value for money for the taxpayer. In terms of enhancing the efficiency and effectiveness of policy delivery, improving and supporting the evaluation capacity within Departments is an important part of the reform programme. Supported by the Irish Government Economic and Evaluation Service (IGEES), this has led to the development of a number of additional processes and reports to support the budgetary process, such as the annual Spending Review. The IGEES network also supports civil service wide opportunities for collaboration and discussion of best practice in policy evaluation and evidence based policy making.

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