Ruairí Quinn
Ceist:32 Mr. Quinn asked the Minister for Social, Community and Family Affairs if he is concerned at the continuously falling proportion of national income being devoted by the Government to social welfare provision. [24993/00]
Written Answers. - Social Welfare Provision.
Over recent years the trend in general government current expenditure as a percentage of national income or gross national product has been declining, reflecting the country's strong economic performance since the mid 1990's. While actual general Government current expenditure has been increasing during this period, because of the exceptionally strong economic performance, GNP has been increasing at an even faster pace.
In addition, economic and demographic improvements during the period have meant that expenditure on certain government programmes has been decreasing. For instance, the major fall of about 115,000, 45%, in the live register since this Government took office has led to substantial reductions in overall expenditure on unemployment payments, which has fallen by almost 41% from £1,011 million in 1996 to an estimated £598 million this year. This fall in expenditure has occurred despite the significant increases in the rates of payment which have been provided over the period.
In line with these developments in overall Government expenditure, the trend in social welfare expenditure as a percentage of gross national product has also been declining in recent years. This is a trend that is mirrored in many of the other EU member states. Expenditure is usually expressed as a percentage of gross domestic product for international comparison purposes. Comparisons based on national income or GNP would result in a more favourable placing for Ireland because unlike other countries, there is a significant disparity between GNP and GDP here.
The Government is committed to ensuring that the benefits of economic growth generally are shared with the more vulnerable sections of our society so that all citizens have the opportunity and incentive to participate fully in the social and economic life of the country. The social welfare system has a central role to play in this regard and the Government has substantially increased total annual social welfare expenditure since 1997 by almost £1 billion.
Last year's social welfare improvements, costing over £428 million on a full year basis, represented the biggest ever increase in social welfare allocation. To put this investment into context, it represents an increase of £214 million, or double the social welfare allocation in the 1997 budget which was introduced by my predecessor.
Going forward, the Programme for Prosperity and Fairness provides for further substantial increases in the resources to be allocated towards social inclusion measures – an additional £1,500 million. is to be provided over period up to 2003.
It should be noted that the Government is also setting aside a portion of the benefits of the current economic success to underpin the future viability of our pensions system thereby ensuring the living standards of our older population in the years to come. To this end a national pensions reserve fund is being established and some £5 billion has already been allocated towards the fund.
Question No. 33 taken with Question No. 7.