I propose to take Questions Nos. 136, 139, 140, 142 and 144 together.
The improvement in economic conditions over the last number of years has enabled the Government to increase investment in public services. Priority has been given to additional funding in the areas of infrastructure, education, childcare and health. This investment delivers on immediate social and economic needs while also providing sustained longer-term benefits to the State. Strong growth in capital spending is a notable feature of the recovery in public spending. This investment has centred on key areas such as social housing, transport and schools and is reflective of the Government’s goal of delivering growth-enhancing investment in conjunction with sustainable progress on social priorities.
Recent fiscal policy has been based on implementing sustainable growth in expenditure that remains affordable over the medium term. In supporting this position, the Government has strived to ensure that public services are delivered in the most efficient and effective way possible. To this end, a number of reforms have been put in place in recent years, including the Performance Budgeting Initiative, the Equality Budgeting Initiative, the National Economic Dialogue and the Spending Review.
It is crucial that this approach is maintained in the medium term in order to mitigate against emerging risks in the domestic and global economy. In light of this, it is imperative that both current and capital expenditure is managed within profile this year by all Government Departments.
The Update to the Medium Term Fiscal Strategy published by the Department of Finance on 9th January set out fiscal projections to 2025. The strategy underpinning these projections is focussed on delivering General Government surpluses that would act as the first line of defence against potential risks to the economy and public finances.
Within this Fiscal framework it is imperative that sustainable expenditure policies, that continue to deliver improvements in public services and infrastructure, are pursued to support the well-being of the overall Irish economy and continued economic and social progress.