Dáil Éireann Debate, Thursday - 2 May 2024
131. Deputy Pearse Doherty asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to provide a breakdown of the core expenditure increases provided in Table 12 of the Stability Programme Update for the years 2025 to 2027, disaggregated by existing levels of service, capital allocations under the National Development Plan, and any other items. [20099/24]
Amharc ar fhreagraAs the Deputy will know the Stability Programme Update is a legal requirement, a technical document for reporting back to the European Commission every year. It reports on the Government's out-turn for the previous year while setting out its forecast of the macro-economic position to the medium term. As part of this we also set out the expenditure ceilings for medium term on a no policy change basis.
The SPU compares the overall economic and expenditure position in April to where we were at the previous Budget. It also allows us to take stock of the economic environment and reflect on our ongoing investment path in public services and infrastructure in advance of setting our budgetary framework for 2025 in the Summer Economic Statement.
Our expenditure policy remains rooted in the Medium Term Expenditure Strategy agreed by Government in the Summer Economic Statement of 2021, with an anchor growth rate in core of 5 per cent per annum. It was on this basis that the core expenditure increases were calculated in Table 12 of the SPU as stated on page 30 of the SPU. Allocations will be made to individual Departments as part of the annual budget process.
The overall provision for spending of €97.1 billion this year continues our investment in schools, transport, health and childcare. It also encompasses the recently agreed Public Service Pay Agreement and the additional capital investment into the National Development Plan (NDP) agreed by Government last year.
Looking to the future, spending in 2027 is projected at over €110 billion. This increased investment will help us to improve living standards, supporting economic growth and help us tackle the challenges of climate change and the green transition.
The continued capital investment through the recently reviewed National Development Plan will make a difference to our lives, particularly in areas like Housing. The 2024 NDP Ceiling now stands at €13 billion due to the additional €250 million provided by Government. This grows out to €14.35 billion in 2025 following an additional €750 million in funding and rises to a record €15.45 billion in 2026 with the addition of an €1.25 billion extra funding that year.
Over the coming months Government will be assessing our plans ahead of the Summer Economic Statement, which will set out more detailed parameters for Budget 2025.
