Dáil Éireann Debate, Thursday - 14 October 2004
37 Ms Lynch asked the Minister for Finance the reason for the significant reduction in capital spending during the first nine months of 2004; his views on whether the decline in capital spending will have implications for the implementation of the national development plan; the steps being taken to address the slowdown in capital spending; and if he will make a statement on the matter. [24654/04]
Amharc ar fhreagra43 Mr. Boyle asked the Minister for Finance the budgeted capital expenditure that has not been spent to date; and the reason such expenditure has yet to occur. [24797/04]
Amharc ar fhreagra48 Mr. Durkan asked the Minister for Finance if the underspend by various Departments in 2004 will result in a reduction in their budget in 2005. [24822/04]
Amharc ar fhreagraI propose to take Questions Nos. 37, 43 and 48 together.
The Revised Estimates volume provided for an increase of 7.2% in net voted spending in 2004. The current indications are that expenditure for the full year will be close to this target, notwithstanding underspends to date.
Net voted capital spending during the first nine months of 2004 amounted to €2.6 billion compared to €2.8 billion 2003. It represents a 6.4% decrease on the corresponding period in 2003, compared to a REV increase of 3.5% for the year as a whole. The capital underspend is mainly due to timing reasons.
Rolling five year multi-annual capital envelopes were introduced in budget 2004 to enable Departments to plan, implement and manage their capital programmes and projects within a framework of relative multi-annual financial security. A key element of the envelopes is that Departments will be able to carry over up to 10% of voted capital from one year to the next. Whilst latest indications are that Departments generally do not anticipate significant underspends on capital at year end, they will, subject to the 10% ceiling, be able to carry over capital savings to next year. The first preliminary indication of the overall scale of the proposed capital carryover by Departments will be known when the Abridged Estimates volume is published on 18 November.
The introduction of the rolling multi-annual capital envelopes that involve a commitment to maintain public investment at 5% of GNP in the 2004-2008 period will ensure that the progress made under the NDP in addressing infrastructural needs is maintained. Total cumulative expenditure under the economic and social infrastructure operational programme to end 2003 accounts for the bulk of infrastructural investment under the NDP. It amounted to €14.9 billion, over €1 billion more than forecast originally.
