Dáil Éireann Debate, Thursday - 28 May 2026
54. Deputy Ged Nash asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation his plans for new forms of budgetary controls in Government departments, including his plans to collectively levy departments for overspends; and if he will make a statement on the matter. [40722/26]
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 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 levy should be considered through the lens of an overall uplift of €7 billion for expenditure in 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.
Circular 21/2026 "Expenditure Control and Escalation Process", which issued to all Government departments on 14 May, provides a clear framework for managing expenditure and sets phases for escalation if spending overruns emerge.
Where expenditure pressures persist, the Circular sets out a framework for when and how DPER may engage with Departments. These steps are focused around strengthening governance, reprioritising expenditure within Departments allocations, and ensuring that overruns are addressed in a timely manner.
This Circular reinforces other recent efforts to strengthen expenditure control, including Circular 18/2025 “Value for Money Obligations” which my Department published last July and correspondence issued by both myself and the Secretary General of my Department at the start of this year highlighting the need to adhere to the expenditure ceiling set out in the Revised Estimates 2026.
This escalation process is designed to be transparent and clear, setting out the different phases that can be taken to address overruns. It defines the roles and responsibilities across Departments, ensuring strong accountability for expenditure management. Importantly, it is responsive to emerging spending pressures and enables timely and proportionate corrective actions where required.
The Circular also reiterates that responsibility for managing expenditure rests with each Department’s Accounting Officer. Alongside these strengthened controls, it is essential that Departments actively pursue efficiencies and reforms to ensure that the significant resources allocated to them are used to efficiently and effectively deliver high-quality public services and supports.
