Update: Public Expenditure Reductions – Public Expenditure 9th October, 2014

QUESTION NO:   24
DÁIL QUESTION addressed to the Minister for Public Expenditure and Reform (Deputy Brendan Howlin)
by Deputy Bernard J. Durkan
for ORAL ANSWER on 09/10/2014  

 To ask the Minister for Public Expenditure and Reform the extent to which public expenditure reductions and reform throughout the public service have brought spending into line with income over the past three and a half year; if he foresees any room for manoeuvre in 2015 under any heading having regard to the success of the measures taken to date; and if he will make a statement on the matter.
 
REPLY.

Gross voted expenditure has been reduced from its peak of €63.1 billion in 2009 to €54.5 billion in 2013.   This represents a reduction of approximately 13 ½ per cent between 2009 and 2013.   The gross voted expenditure allocation for 2014 is €53 billion.

The implementation of these expenditure adjustments has contributed towards a radical improvement in the sustainability of the public finances. This has been delivered through the efforts of all Departments and their agencies to seek savings, pursue efficiencies, and manage within constrained budgets, often while meeting increasing demands for the public services they deliver.   In this respect the Public Service Reform Plan has been an essential part of the Government’s approach in addressing the challenges posed by reduced resources.   The Reform Plan requires a refocus on business processes and adjustments to the way all public bodies use available resources. It promotes changes to the way individual public servants go about their daily work and greater flexibility in the way services are provided, for example with greater use of technology and shared services.   With the establishment of the Office of Government Procurement, reform in the area of procurement is focussed on delivering better value for the tax-payer by centralising procurement expertise, driving further professionalisation of the function and reducing risk for the State.

The Government’s overarching fiscal policy objective for 2015 continues to be delivering a budget deficit below 3% of GDP. Given the improved fiscal and economic outlook, and the ongoing expenditure restraint, it is expected that the   budgetary objective of a deficit of less than 3% of GDP can be achieved with a broadly neutral budget.