Dáil Éireann Debate, Tuesday - 19 May 2026
426. Deputy Cian O'Callaghan asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation to provide a breakdown of the expected spending cuts for each Government Department as a result of recent overspends in the Department of Education and Youth, in tabular form; and if he will make a statement on the matter. [36722/26]
Amharc ar fhreagraThe Government agreed a Medium Term Fiscal Structural Plan (MTFP) in December last year. This set out expenditure ceilings for the period to 2030. It provides for significant uplifts in expenditure over the coming years, with gross voted spending to reach €147.3 billion in 2030. As set out in the MTFP the ceiling for 2027 will increase to €125.5 billion. This is an uplift of €7 billion over the 2026 expenditure ceiling of €118.5 billion. Delivery of the MTFP over the medium-term horizon will require enhanced expenditure control, avoidance of in-year decisions with carryover costs for subsequent years and robust oversight mechanisms.
In April, Government agreed that additional funding of €646 million will be provided to the Department of Education and Youth in 2026. To accommodate this reprioritisation and deliver on the 2027 ceiling agreed under the MTFP, other Departments have been asked to deliver a levy focusing on efficiencies and reforms which will total €446 million from 2027. This should be considered through the lens of an overall uplift of €7 billion for expenditure in 2027. It will not impact the 2026 allocations.
The delivery of reforms and efficiencies supports adherence to the fixed expenditure ceilings set out in the MTFP. It reflects the need to moderate the rate of expenditure growth across other Departments to facilitate Government’s decision to reprioritise and provide additional investment to the Education sector within the agreed overall fiscal framework out to 2030. The scale of the efficiencies to be found ranges from 0.02 per cent to 1.4 per cent on the 2026 current expenditure funding across all other Vote Groups.
The distribution of the levy across Departments has been designed to protect certain areas including:
• Social Protection Vote Group non-pay allocation;
• Department of Health pay allocation;
• Specialist Disability Services subhead in the Department of Children, Disability and Equality;
• Justice, Home Affairs and Migration Group pay;
• Housing, Local Government and Heritage Group non-pay and
• Pension funding across Votes.
My Department wrote to Secretaries General of other Departments, following the Government decision, informing them of the need to identify efficiencies and reforms and that this would form a key element of the Estimates engagement for Budget 2027. It is a matter for each Department to determine how the levy will be applied across the Vote Group and identify the efficiencies and reforms required to ensure this. My own Department will also be undertaking this process in accordance with the requirements. The table below sets out the level of levy that will apply to each Vote Group.
|
Vote Group |
% |
|
Agriculture, Food and the Marine |
1.3% |
|
Children, Disability and Equality Group |
0.6% |
|
Climate, Energy and the Environment |
1.3% |
|
Culture, Communications and Sport |
1.4% |
|
Defence Group |
1.0% |
|
Enterprise, Tourism and Employment |
1.2% |
|
Finance Group |
1.4% |
|
Foreign Affairs and Trade Group |
1.4% |
|
Further & Higher Education, Research, Innovation & Science |
1.3% |
|
Health Group |
0.7% |
|
Housing, Local Government & Heritage Group |
0.1% |
|
Justice, Home Affairs and Migration Group |
0.7% |
|
Public Expenditure, Infrastructure, Public Service Reform and Digitalisation Group |
0.6% |
|
Rural and Community Development and the Gaeltacht |
1.3% |
|
Social Protection |
0.02% |
|
Taoiseach's Group |
1.4% |
|
Transport |
1.4% |
