Update: Expecditure and Reform Targets – Public Expenditure and Reform 6th November, 2014

 
 
* To ask the Minister for Public Expenditure and Reform the extent to which he is satisfied that all expenditure and reform targets have been met to date and will continue to so do far in the future; and if he will make a statement on the matter.
 

For WRITTEN answer on Thursday, 6 November, 2014.

* To ask the Minister for Public Expenditure and Reform if he and his Department have anticipated budgetary overruns in any particular Departments or State bodies in the coming year; and if he will make a statement on the matter.
 

For WRITTEN answer on Thursday, 6 November, 2014.

* To ask the Minister for Public Expenditure and Reform the extent to which public expenditure objectives set out by the Troika remain on course; and if he will make a statement on the matter.
 

For WRITTEN answer on Thursday, 6 November, 2014.

* To ask the Minister for Public Expenditure and Reform the extent to which targets achieved to date in the area of public expenditure and reform will have a lasting and beneficial economic impact; and if he will make a statement on the matter.
 

For WRITTEN answer on Thursday, 6 November, 2014.

* To ask the Minister for Public Expenditure and Reform if he is satisfied that progress to date in the issue of public expenditure and reform remains in line with expectations.
 

For WRITTEN answer on Thursday, 6 November, 2014.

* To ask the Minister for Public Expenditure and Reform if he expects public expenditure reform targets to remain on course for 2015; and if he will make a statement on the matter.
 

For WRITTEN answer on Thursday, 6 November, 2014.

 
REPLY.

 The Deputy will note that Ireland is no longer subject to the Troika programme as this was successfully exited at end-2013. There remain, however, annual deficit ceilings set out in the Excessive Deficit Procedure  which the Government must meet, and our fiscal policies are predicated on achieving these. To date, the Government’s approach to fiscal consolidation, comprising both tax and expenditure measures, has proven successful as we have achieved all targets.

2015 represents the last year in which Ireland will be in an Excessive Deficit Procedure,  and Budget 2015 and the Comprehensive Expenditure Report 2015   2017 are designed to deliver a deficit of below 3% of GDP. In the subsequent years, Ireland is committed to  managing its public finances  in line with the provisions of the Stability and Growth Pact.

Our task in achieving our fiscal targets has of course been assisted by the strong recovery under way in our economy. The latest GDP data shows that output expanded by 7.7% in the year to Q2 2014, while unemployment, a key priority of this Government, continues to fall. This has offered the Government a degree of flexibility in implementing fiscal policy as the latest Exchequer returns show that revenues from taxation are  almost €1.1 billion ahead of  profile.

This recovery has of course been aided by the fiscal policy objectives and reforms implemented by this Government. A precondition for economic growth is prudent and sustainable management of the public finances. Added to this, the economic growth-friendly environment and policies, as well as the significant public sector reforms undertaken, provide the foundations for sustained economic growth and prosperity for years to come.

Aside from their contribution to economic growth, reforms to the way in which the public sector operates will provide Irish citizens with high-quality public services that are delivered in an efficient and cost-effective manner. The increased focus on evaluation of expenditure policies and programmes has also contributed to our ability to effectively manage and allocate resources across all areas of public policy. For example, the forthcoming publication of the Capital Review will set out multi-annual capital expenditure ceilings for Departments, and identify those areas in which the Government must invest in order to promote future growth and resolve pressing social issues.

With regard to expenditure management in 2014, my Department  regularly analyses expenditure trends across all areas of Voted expenditure. As of end-October 2014, Gross Voted expenditure of €44.2 billion was 0.9% ahead of profile, with  Health Group expenditure being 3.8% over profile. My Department continues to engage with all Departments  to ensure that expenditure overruns are managed without posing risks to the Government’s overall fiscal objectives.