Dáil Éireann Debate, Tuesday - 7 July 2026
78. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation his plans to ensure that departmental budget requests are based on total spending in the previous year; that any previous budgetary overruns will be considered in next years’ budget plans; and if he will make a statement on the matter. [51545/26]
Amharc ar fhreagraExpenditure figures are published each month in the Fiscal Monitor. At end June, gross spending was €54.4 billion euro. Compared to end June last year, this is an increase of €3.5 billion or 6.9%. Overall, the June spending is broadly in line with the plans submitted by Departments, with the aggregate variance from profile showing a variance of 1.0% under the planned spend. My Department actively monitors spending developments throughout the year and is in ongoing engagement with all other Departments to identify any spending risks and mitigations to these.
In any given year, there can be a range of reasons why Departments might require funding above the amount originally included in an Estimate. Additional allocations may be needed due to Government decisions to provide supports in response to developments during the year – such as the recent Supplementary Estimates for fuel support schemes – or where services or schemes cost more than a Department originally estimated. The additional funding may be required on temporary or reoccurring basis.
Incorporating all expenditure overruns facilitated through supplementary estimates into future years budgets would risk embedding inefficiencies into the base and undermine the need for meaningful reforms to be developed and implemented. Budget 2026 placed a particular emphasis on achieving value for money. The budget strategy was developed using a whole of budget approach, which placed a strong emphasis on the totality of expenditure and linking expenditure and investment to improved outcomes.
As part of my Department’s role, it establishes the governance frameworks, or rules, setting out the principles and procedures for how money should be spent. These frameworks support Accounting Officers in discharging their responsibility to ensure expenditure is managed in line with the Voted allocation and that services are delivered in an effective and efficient manner.
Last year my Department published Circular 18/2025, which set out the value for money obligation on all civil and public servants. 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. This year, Circular 21/2026 "Expenditure Control and Escalation Process" issued to all Government departments in May and provides a clear framework for managing expenditure and sets phases for escalation if spending overruns emerge.
The Medium-Term Fiscal and Structural Plan was published in December. Grounded in the Programme for Government, the plan sets fixed expenditure ceilings out to 2030, with total spending increasing to €147.3?billion in 2030. For this level of funding to deliver on the commitments set out and prioritised by Government in the Programme for Government Departments must adhere to these ceilings. This will require firm expenditure discipline, robust internal oversight and risk-management arrangements, and the avoidance of in-year policy decisions that create additional cost pressures and the need for supplementary estimates.
