Dáil Éireann Debate, Tuesday - 21 November 2023
202. Deputy Róisín Shortall asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the figure provided by his Department to maintain existing levels service in 2024, under his respective remits ahead of Budget 2024; the figure granted by his Department in each case; and if he will make a statement on the matter. [51104/23]
Amharc ar fhreagraOne of the main parts of the annual budgetary process is determining the amount of funding required for Departments to carry out their existing functions, before any new decisions are taken. This is referred to as the ‘Existing Level of Service’ or ELS. ELS funding provides provision for the maintenance of our existing services and schemes.
The Medium Term Expenditure Strategy, agreed by Government in 2021, set out an indicative overall provision of 3 per cent of the core current base each year to meet ELS pressures. This is an estimated cost to aid overall fiscal planning based on trends observed in previous years. This is an overall provision rather than a set rate of increase for each Department. In July the Government agreed the 2023 Summer Economic Statement outlining an estimated amount of €2.3 billion in respect of the additional costs arising in 2024 to deliver ELS.
ELS is a significant part of the additional expenditure funding allocated each year and delivers additional investment in public services, through for example providing existing schemes to a growing number of people, and investment in the public service workforce.
Each year both as part of the whole of year Budget process, and the finalisation of Estimates, ELS is considered in detail in each Vote. This requires an assessment of the specific needs of the Vote including previous budget decisions, the impact of the existing public sector pay deals and any demographic or other demand impacts.
Government agreed a total amount of €96.6 billion for Budget 2024. The additional costs of ELS were estimated as circa €1.8 billion or 2.4 per cent of the current expenditure base. This was lower than the amount indicated in the Summer Economic Statement. This is due to a number of factors including review of service usage rates and requirements, and cyclical factors impacting take-up and costs of schemes and supports.
The following table sets out the indicative breakdown of ELS costs per Vote Group in Budget 2024 as set out in the Expenditure Report 2024:
|
Estimated ELS Cost Per Department - Budget 2024 |
€ millions |
|
Agriculture, Food and the Marine |
7 |
|
Children, Equality, Disability, Integration and Youth |
198 |
|
Defence |
15 |
|
Education |
365 |
|
Enterprise, Trade and Employment |
4 |
|
Environment, Climate and Communications |
2 |
|
Finance |
22 |
|
Foreign Affairs |
3 |
|
Further and Higher Education, Research, Innovation and Science |
65 |
|
Health |
708 |
|
Housing, Local Government and Heritage |
165 |
|
Justice |
74 |
|
Public Expenditure, NDP Delivery and Reform |
63 |
|
Rural and Community Development |
12 |
|
Social Protection |
117 |
|
Taoiseach |
0 |
|
Tourism, Culture, Arts, Gaeltacht, Sport and Media |
40 |
|
Transport |
40 |
