Dáil Éireann Debate, Thursday - 27 January 2022
127. Deputy Cathal Berry asked the Minister for Defence the funds returned unspent to the Exchequer from his Department in 2020 and 2021, in tabular form; and if he will make a statement on the matter. [3897/22]
Amharc ar fhreagraOn an annual basis, the Defence Sector budget, comprising of Vote 35 (Army Pensions) and Vote 36 (Defence) is determined within the overarching budgetary framework and approved by Dáil Eireann, having regard to the level of resources available and defence policy requirements, with multi-annual capital envelopes determined as part of the overarching National Development Plan.
Tables 1 and 2 below outline Defence and Army Pensions expenditure in 2020 and 2021
Table 1 - 2020
|
- |
Vote 35 Army Pensions €m |
Vote 36 Defence €m |
|
Gross Estimate |
259.1 |
781.0 |
|
Gross Outturn |
251.0 |
780.9 |
|
Gross Savings |
8.1 |
0.1 |
|
Additional A-in-As |
0 |
6.1 |
|
Net Exchequer Surrender |
8.1 |
6.2 |
Table 2 - 2021
|
- |
Vote 35 Army Pensions €m |
Vote 36 Defence €m |
|
Gross Estimate |
262.6 |
809.8 |
|
Gross Outturn |
260.1 |
786.5 |
|
Gross Savings |
2.5 |
23.3 |
|
Additional A-in-As |
0 |
6.1 |
|
Net Exchequer Surrender |
2.5 |
29.4 |
It is important to note that Appropriation‘s-in-Aid (A-in-A’s) cannot be used as an additional source of funding. Under Government Accounting Rules, any additional A-in-A’s above the estimate must be surrendered to the Exchequer.
Expenditure under the Army Pensions Vote is essentially demand-driven and non-discretionary and a gross underspend of €8.1 million arose in 2020 and €2.5 million in 2021. This arose mainly due to less personnel exiting the Defence Forces than was originally estimated. In any given year, it is very difficult to predict accurately the exact number of voluntary early retirements from the Defence Forces with entitlement to immediate payment of retirement benefits.
There was a gross underspend of €0.1 million on the Defence Vote in 2020 while the provisional outturn for 2021 indicates a gross underspend of €23 million. This underspend in 2021 is mainly attributable to pay savings which arose due to the actual strength numbers being below the target establishment strength of 9,500 Permanent Defence Force (PDF) personnel. In previous years, with the consent of the Minister for Public Expenditure and Reform, such pay savings were reallocated to address spending pressures elsewhere in the Defence Vote subheads and across the Defence Sector. However in 2021, similar to many other Public Service organisations, the continued impact of Covid-19 and supply chain difficulties has limited the extent to which my Department was able to re-direct these savings.
Notwithstanding these difficulties, there was significant capital spending of over €129 million in 2021 on the ongoing upgrade and replacement of essential military equipment and the development of the Defence Forces built infrastructure. This level of expenditure, despite huge Covid-19 and other supply chain challenges, highlights my commitment to ensuring the Defence Forces have the capabilities necessary to enable them to fulfil all roles assigned by Government, both at home and overseas. Additionally, for 2022, the provision of the significant funding allocation of over €1.1 billion emphasises this Government ongoing commitment to the Defence Sector.
The Deputy will be aware that the Government established an independent Commission on the Defence Forces in December 2020. The Commission are finalising their work with a view to completing their Report as soon as possible. The Commission's Report, when submitted, will be fully considered at that point.
