Dáil Éireann Debate, Thursday - 16 June 2022
101. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the amount of the €7 billion in contingencies for spending set out in Budget 2022 which remains unallocated; and if he will make a statement on the matter. [29750/22]
Amharc ar fhreagraBudget 2022 made provision for up to €7 billion in funding to continue our response to the Covid-19 pandemic, including spending under the National Recovery and Resilience Plan. Just under €3 billion of this was allocated to Departments at the time of the Budget, with a further €96 million in the Revised Estimates for Public Services (REV) 2022, leaving a balance of some €3.9 billion in Contingency Funding.
In February 2022, the Government announced a suite of measures to assist with costs of living pressures. This included the Electricity Credit to domestic account holders, which had an estimated cost of c. €0.4 billion. This required a Supplementary Estimate for the Department of Environment, Climate and Communications, which was brought before the Dáil in March to provide an additional allocation of €271 million with the remaining cost funded through reallocation of existing Vote 29 resources. Following this development, the remaining contingency balance stood at just under €3.7 billion.
While this is the only additional draw down from the contingency funding allocated in Departmental Estimates this year to date, there are significant pressures and commitments on the remaining funding including:
1. Further Covid support measures, including the response to the Omicron wave will require additional funding over that foreseen at the time of Budget 2022. This includes income and employment support schemes in the Department of Social Protection, Department of Health Covid-19 response, the targeted Commercial Rates Waiver for Q1 2022 and Department of Education Covid response measures. These Covid-19 expenditure pressures are evident in the end May expenditure reported in the Fiscal Monitor with gross current expenditure in the Department of Social Protection €315 million ahead of profile and €291 million ahead of profile in the Department of Health.
2. In addition, there will be further Covid-19 related spending requirements during 2022, in particular depending on developments in the trajectory of the virus over the winter period.
3. Additional allocations may be required to fund the other cost of living measures announced in February and April.
4. Costs related to the humanitarian response to the war in Ukraine will also need to be provided and will be significant.
Further allocations from the contingency will be considered later in the year taking account of any offsetting underspends.
