Virement is the application of savings on one or more subheads to meet excess expenditure on another subhead or subheads in the Vote. It is an integral component of Government Accounting, which is strictly controlled and cannot be progressed unilaterally at Vote level without prior consultation and approval from the Department of Public Expenditure, NDP Delivery and Reform (DPENDPDR). The usual procedure is that provisional sanction is obtained prior to the actual spend with definitive sanction sought when the Appropriation Accounts have been prepared.
Virement is used by my Department on an annual basis. Since my appointment as Minister for Defence in December 2022, the application of virement in relation to the Defence Vote for 2022 allowed savings arising on, inter alia, PDF Pay and DF Built Infrastructure subheads to be redirected to meet spending pressures in Defence Forces Capability Development, ammunition, Air Corps and Naval Service equipment and support, barrack expenses and engineering equipment and other operational areas across a range of subheads.
In accordance with DPENDPDR guidelines, officials in my Department sought approval in principle for virement in December 2022 and have recently applied for final formal sanction from DPENDPDR.
In addition, in relation to the Army Pensions Vote for 2022, formal approval has also recently been sought from DPENDPDR for virement to use savings on the Defence Forces (pensions) schemes subhead to address small excesses which have arisen in the Administration and Wound and Disability subheads.
