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Fiscal Policy

Dáil Éireann Debate, Thursday - 28 May 2026

Thursday, 28 May 2026

Ceisteanna (75)

Thomas Gould

Ceist:

75. Deputy Thomas Gould asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation where he has identified money wastage in his own Department; and the actions he has taken to address these. [40324/26]

Amharc ar fhreagra

Freagraí scríofa

The Government agreed a Medium Term Fiscal Structural Plan in December of last year, setting out expenditure ceilings through to 2030. The Plan provides for significant increases in public spending over the period, with gross voted expenditure projected to reach €147.3 billion by 2030. Delivering on these commitments over the medium term will require strengthened expenditure discipline, including tighter control of spending, avoidance of in-year decisions that give rise to recurring costs and the implementation of robust oversight and governance mechanisms.

In April, the Government agreed that additional funding of €646 million will be provided to the Department of Education and Youth in 2026. It was further agreed that €446 million of this funding will be secured from 2027 onward through a levy applied to other Votes. This approach is intended to ensure that the additional investment in education is accommodated within the fixed expenditure ceilings set out in the Medium Term Fiscal Structural Plan.

The introduction of the levy reflects the need to moderate the overall rate of expenditure growth across Departments in order to facilitate this reprioritisation, while maintaining adherence to the agreed fiscal framework. The design of the levy has taken account of the need to protect key areas of expenditure, including Social Protection non-pay allocations, Department of Health pay, the Specialist Disability Services subhead within the Department of Children, Disability and Equality Vote, Justice sector pay, Housing non-pay, and pension funding across Votes.

It is a matter for each Department to determine how the levy will be managed within its Vote Group, including the identification of the efficiencies, reforms and savings measures required to meet the adjustment. The levy is estimated to impact current expenditure across relevant Votes in a range of between 0.02 per cent and 1.4 per cent.

My own Department has written to Secretaries General following the Government decision, outlining the requirement to identify efficiencies and reforms and noting that this will form a central component of the Estimates process for Budget 2027. In parallel, work is underway within my Department to identify and report on savings and efficiencies as part of this broader exercise.

In this context, my Department will commence the process of identifying sustainable savings in respect of its Vote. This will involve a careful and systematic examination of the Department’s strategic objectives and ambitions, with a view to identifying areas where efficiencies can be achieved without undermining key policy priorities or service delivery.

This will support the Department’s engagement in the Estimates process for Budget 2027 and contribute to the wider Government objective of ensuring that public expenditure is managed in a sustainable, efficient and strategically aligned manner.

Roinn