Dáil Éireann Debate, Thursday - 26 October 2023
12. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he is considering a revision to budget 2024, given the context of the wide range of inflation projections for 2024; and if he will make a statement on the matter. [46960/23]
View answer32. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he expects to revise funding for any public services in 2024; and if he will make a statement on the matter. [46958/23]
View answerI propose to take Questions Nos. 12 and 32 together.
Budget 2024 outlines an overall tax and expenditure budgetary package of €14 billion, with total gross voted expenditure increasing to €96.6 billion next year.
Inflation has fallen back from the average of 8.1 per cent seen in 2022, and the forecasts continue to predict further reductions, with the Budget day forecasts of the Department of Finance setting out HICP inflation of 2.9 per cent for next year. In this context, Budget 2024 continues a two pronged approach of responding to inflation and cost of living challenges in line with the approach adopted in Budget 2023. This sees a core expenditure growth rate of 6.1% to help support public services while also providing a range of temporary measures to help households and businesses with cost of living pressures, in particular the elevated energy costs.
Budget 2024 provided a core expenditure package of €5.3 billion which will support public services and our population throughout 2024. This package will:
• provide increased resources for core public services and infrastructure, investing in quality of life in Ireland to support a strong, fair and equal society into the future,
• while responding to external challenges including inflation.
The second part of this dual approach was the delivery of an expenditure package of €2.3 billion in temporary Cost of Living supports. These supports will be provided over the winter period, with a significant level provided before the end of 2023. Every household in the State will benefit from these supports to some extent with those on lower incomes benefiting proportionally more.
Finally, I would also add that Budget 2024 included €4.5 billion for non-core funding. This included a significant amount of €2.5 billion for our humanitarian response to arrivals fleeing the invasion of Ukraine and almost €1.3 billion for our continued response to the Covid 19 pandemic, primarily in the health sector which continues to deal with the legacy impacts, both direct and indirect, on its frontline services.
My colleagues and I remain conscious of the pressures faced by households due to inflation. This is reflected in the significant progressive budgetary package set out in Budget 2024 that balances the challenges faced by business and households with the need to protect the sustainability of the public finances.
