Dáil Éireann Debate, Thursday - 8 February 2024
181. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the extent to which targets in respect of public expenditure for the year 2024 remain in line with expectations; and if he will make a statement on the matter. [5988/24]
View answerThe Government’s approach to public expenditure policy is set out in the Medium Term Expenditure Strategy (MTES). The objectives of the MTES are twofold, to ensure that the level of core expenditure growth is sustainable in the long-term and that investment in expenditure protects and delivers improvements to public services. This framework must be responsive to the economic landscape and is reviewed annually as part of the whole of year budget process including the Summer Economic Statement and the Estimates process.
Managing the delivery of services within budgetary allocations is a key responsibility of each Minister and measures are in place to help ensure that budgetary targets are met. The ongoing dialogue between my Department and line Departments is part of the monitoring process for existing levels of service provision and any emerging pressures. My Department ensures that expenditure is being managed within the overall fiscal parameters and the drawdown of funds from the Exchequer is monitored against the published expenditure profiles. There is regular reporting to Government and information in relation to voted expenditure is published monthly with the Exchequer Returns.
In seeking to smooth the impact of higher prices on public services and supports, Government sought to strike a balance in Budget 2024 between protecting investment in public services and helping to mitigate the cost of living pressures while also ensuring sustainability of the public finances. The Revised Estimates for 2024 provided €96.3 billion in gross expenditure to Departments. These amounts will form the basis of monitoring throughout 2024. The overall Government expenditure ceiling is €96.7 billion, €0.4 billion of which is unallocated.
Since the publication of REV 2024, proposals for a new public service pay agreement – Public Service Agreement 2024 to 2026 - were finalised at the Workplace Relations Commission (WRC) on 26th January. Public service unions and associations can be expected to ballot on these proposals in the coming weeks. The Revised Estimates for 2024 provided for an allocation of €700 million in respect of a future public service pay agreement, which was being negotiated at that time. The additional €400 million, upon ratification of the agreement, will be provided to departments as required through supplementary estimates later in 2024.
In addition, as part of the Government’s fiscal strategy Budget 2024 announced the establishment of two new reserve funds; the Future Ireland Fund and the Infrastructure, Climate and Nature Fund. These reserves will help to future proof our economy and public finances by enabling us to maintain our investment plans and expectations over the longer term. Investing windfall corporation tax receipts now will also help us meet any potential future fiscal challenges.
Finally the Government, through updates from the Minister for Finance, continues to monitor the macroeconomic situation including labour market trends and inflation levels.
