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Departmental Budgets

Dáil Éireann Debate, Thursday - 18 April 2019

Thursday, 18 April 2019

Ceisteanna (11)

Barry Cowen

Ceist:

11. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform his views on the publication from the Parliamentary Budget Office in regard to departmental expenditure ceilings; his views on whether expenditure ceilings are an effective method of controlling costs; the penalties for Departments that breach these ceilings; and if he will make a statement on the matter. [17984/19]

Amharc ar fhreagra

Freagraí ó Béal (9 píosaí cainte)

I would like to hear the Minister's comments on the recent publication from the Parliamentary Budget Office.

The Estimates process and the determination of expenditure ceilings now takes place as part of a whole-of-year budgetary cycle. The summer economic statement, SES, sets out the overall fiscal strategy for the approaching budget. The pre-budget expenditure position is provided for in the mid-year expenditure report. This sets the baseline for examination of budgetary priorities by the Government and the Oireachtas. Following detailed consideration, expenditure ceilings are published in the budget day expenditure report and are informed by a medium-term perspective on certain expenditure pressures and developments.

The expenditure report of 2019 sets out the revised baseline for current expenditure out to 2021. The ceilings also include an amount of unallocated resources in 2020 and 2021 based on the budgetary projections at budget time. These can be utilised to meet the carryover impact of budget 2019 measures or for new expenditure measures. 

The management of public expenditure within the agreed voted allocations is a key responsibility of each Minister and Department. However, where due to expenditure overruns or policy decisions the need arises for additional expenditure that can be accommodated within the overall budgetary parameters, any increase in the ceiling requires Government approval. Where such approval is provided the associated Supplementary Estimate is then presented to Dáil Éireann for detailed consideration and approval.

Against this overall background, the publication from the Parliamentary Budget Office is a helpful addition to the stock of analysis and professional commentary that can inform the ongoing process of our budgetary work.

It is indeed a helpful contributory to the analysis of these figures and we have to take note of and acknowledge what is contained within it. The Minister said that vote allocations are the responsibility of each Minister, which is the case. Between 2012 and 2017 the overrun fell within the ceiling only once - in 2013, whereas currently the baseline is regularly exceeded by various unforeseen events, inefficiencies and overruns in regard to cost. Has this process run its course and are there other processes which the Minister's believes should be put in place to ensure the key responsibilities he mentioned are taken seriously by Ministers and that they are accountable to those they represent here and, by extension, the public? It would appear that the commitments made in any given year cannot be guaranteed to be met, which is hardly consistent with the process.

The Deputy is correct that supplementary budgets have been required for different reasons in each of the years. In terms of this year, I have already commenced engagement with a number of Departments on their expected spend later this year. In terms of where we are now versus profile, while the vast majority of Departments are now either at or below profile, for me what is key is where we end up in the second half of the year. The Minister for Health, Deputy Harris, and I have already engaged on this matter a number of times this year and following Easter I will be meeting other Government colleagues in regard to this issue.

It is sometimes unavoidable that during a year particular matters require supplementary budgets. I refer, for example, to the supplementary funding for the Department of Transport, Tourism and Sport to deal with the effects of flooding and natural disasters and the Department of Justice and Equality to meet the cost of Garda overtime and organised crime. I acknowledge that there are certain forms of supplementary budgets that for the coming year and years we need to reduce the frequency and value of. I have put in place new measures for this year to try to address that issue.

It obviously has become the norm rather than the exception. The record speaks for itself in that regard. Save for emergencies in regard to weather, Papal visits and so on I think the roles and responsibilities that have been mentioned by the Minister will have to be taken much more seriously.

The Minister will have to take his role in arresting this issue much more seriously. I look forward to this issue not being repeated in the coming year, save for the exceptions in how the Lord delivers weather and so forth, as per the Healy-Raes. As I have said, coming in within the ceiling is the exception rather than the norm. It is time for that to be corrected.

I thank the Deputy for his valuable insight.

The vast majority of Departments stay inside their expenditure ceilings. Of course, the Department of Health has had ongoing difficulties in doing that. In some years, we made progress in reducing the level of supplementary funding that was needed. In other years, it did not go as I would have wanted. Last year is an example of that. I assure the Deputy that I take my role as seriously as he expects. I know that if I did not provide supplementary funding to certain Departments, the Deputy and other Members would probably be the first people to criticise me.

We do not force them to overspend.

When things happen during the year, it can mean that things turn out differently from what Ministers indicated to me at budget time. In such circumstances, I have put supplementary budgets in place in an effort to prevent difficulties from arising. I take the Deputy's overall point that one or two Departments need to be in a better place this year than they were last year.

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