Dáil Éireann Debate, Thursday - 12 February 2026
25. Deputy Tony McCormack asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation to provide an update on reforms aimed at improving efficiency across public spending programmes; and if he will make a statement on the matter. [10962/26]
View answerI thank the Deputy for his question.
Improving efficiency across public spending programmes and securing value for money is crucial to the work of my Department.
Last year, my Department published the Medium Term Expenditure Framework, which is based on the three pillars of fiscal sustainability, spending adequacy, and spending efficiency. The third pillar of spending efficiency is focused on promoting value for money and ensuring that the government’s investment delivers tangible results.
Budget 2026 placed an increased emphasis on achieving value for money and improving spending efficiency. The budgetary strategy placed a strong focus on the totality on expenditure and clearly linking the increased investment in government schemes and services with the outputs that are to be delivered. As part of Budget 2026, Chapter 3 of the Expenditure Report book outlines a series of key reform proposals across Vote Groups. Sector specific reforms are outlined in each of the Vote Chapters.
Improving the efficiency of public expenditure is the responsibility of all civil and public servants. Last year, I published Circular 18/2025 which emphasised that value for money must be sought by civil and public servants at all levels and all stages of policy development. It highlighted the roles and responsibilities in the delivery of value for money, as well as the robust guidance, codes of practice, and circulars underpinned by legislation and informed by best practice in the pursuit of value for money. Individual Accounting Officers in each Government Department are responsible for ensuring that their Department manages their allocation in an efficient and sustainable manner, and that the delivery of their public spending programmes represent value for money. My Department will shortly write to each Department to underscore the importance of adhering to their budget allocations, and of progressing their reform agenda.
My Department will continue to monitor and scrutinise expenditure trends across government to promote the efficient management of public expenditure and value for money. My Department engages regularly with Departments to assess expenditure trends and to assess the sustainability of spending plans to the end of the year.
My Department is currently carrying out a review of the Public Financial Procedures (PFP) with a view to further enhancing accountability requirements in terms of providing value for money and the efficient delivery of Government supports and services. The PFP sets out the principles of government accounting and is a practical guide to assist all officials in their day-to-day decision making on financial management issues. The review process is focused at developing the PFPs to better support officials in executing their responsibilities including but not limited to, budgetary discipline within the limits voted by Dáil Éireann, and evidence-based expenditure decisions. The review group will produce recommendations for a redesign and modernisation of PFP for implementation in 2026.
