Vol. 474 No. 8
46 Mr. Cullen asked the Minister for Finance his views on whether the same credence should be attached to published projected figures for Government expenditure for 1998 and 1999 as was attached to the Government's 1994 promise to limit expenditure growth to 2 per cent per annum in real terms; and if he will make a statement on the matter. [3997/97]
The publication in this year's budget of projections for the main economic and budgetary aggregates, including expenditure, in 1998 and 1999 marks a significant further step in the move to a full multi-annual planning system. The expenditure projections for 1998 and 1999 published in the budget represent an objective estimate of the cost in those years of a continuation of the existing level of services under departmental spending programmes and taking account of the additional spending commitments included in Partnership 2000. They do not take account of the possible cost of any improvements to the existing level of services or of any additional commitments over and above those contained in Partnership 2000. They were arrived at after careful and detailed discussions between my Department and the spending Departments. I am satisfied that they are as soundly based as possible.
The projections provide a benchmark which puts the Government in a much better position to consider the overall budgetary and economic impact of any proposed new spending policies.
The multi-annual approach operates on the basis of a rolling three-year planning cycle and the projections for 1998 and 1999 published with this year's budget will be subject to review and update as the three-year cycle progresses. The published expenditure figures are not spending targets. The target rate of growth of gross current supply services spending over the period 1997-9 is set out in Partnership 2000, namely, to keep the annual growth as close as possible to 2 per cent in real terms, any excess in this figure in 1997 being minimised and the aim for 1998 and 1999 being to hold to an average annual 2 per cent rate.
