2026-04-16

1. Deputy Mairéad Farrell asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation to give an update on the projected overspends of Government Departments; and if he will make a statement on the matter. [27579/26]

As the Aire would be aware, there was an overspend in the Department of education. I wonder if he can give us an update on that. As he will know, the Department of education has projected a €600 million overspend that will be paid for by cuts to the Department of education and other departmental budgets. To be honest, it is further evidence that the Government cannot be trusted with public finances. I ask the Minister to give us an update.

Budget 2026 set out an expenditure ceiling of €117.8 billion. This reflects a significant uplift in expenditure to support the delivery of our programme for Government commitments. Expenditure figures from March were published on 7 April as part of the fiscal monitor. This is published monthly and sets out the spending position for each ministerial Vote group. It compares expenditure to the profile set out by Departments and to the previous year. Quarter 1 showed total gross expenditure was €26.4 billion. This was €1.6 billion, or 6.4%, higher than the same period last year. At an overall level, end-of-March spending is broadly in line with the plans submitted by Departments, with the aggregate variance from profile showing an underspend of 1.6%. Budget 2026 provided total capital spending of €19.1 billion, a record level of investment. This will work in tandem with reforms to support the delivery of critical infrastructure in electricity, transport, housing and energy. Capital spending at the end of March was €2.7 billion, showing an increase of 8% on the same period last year. The largest year-on-year increases were in the Department of Education and Youth, which was up €89 million; the Department of Transport, which was up €57 million; and the Department of housing, which was up €56 million. Capital spending, as the Deputy knows, tends of ramp up as the year progresses, with the highest spending levels in quarter 4. Budget 2026 also provided for a significant increase in the level of current expenditure, advancing key priorities in health, social protection and public services. End-of-quarter 1 spending was at €23.7 billion, or an increase of 6.2% on the end of March last year. This reflects budget 2026 measures such as social protection rate increases and front-line health and disability services. The Vote groups with the largest year-on-year increases were the Departments of Social Protection and Health. Current spending is €0.2 billion or 0.9% behind the plans set out by Departments. The majority of Vote groups are under profile. My Department actively monitors spending developments and is in ongoing engagement with all Departments to identify any spending risks and mitigations. There are other areas. I will continue on them in my next contribution.

My question is where exactly the cuts will be. The reality is that these cuts are the direct result of the Government's decisions. Anybody who read the budget book at the last budget will know that the sums do not add up. We know that Fianna Fáil and Fine Gael Governments have underbudgeted and overspent for years and this Government is the exact same. Budget after budget, the Government failed to allocate the necessary funding for essential public services and relied upon Supplementary Estimates to cover its back. This overspend is not exceptional; these things seem to happen every year under the Minister's watch. Yet, the Minister has decided to scrap the practice of using Supplementary Estimates to cover overspends. To be honest, I think that is quite shortsighted. It also shows the poor budgeting that we have seen. I have never seen anything like the last budget, to be perfectly honest. The public deserves to know exactly where those cuts are going to come into effect.

To be clear, the expenditure ceiling increased to €117.8 billion, a significant expansion of public services and investment infrastructure in the economy. All I hear from the Deputy is to massively increase spending, which would significantly undermine the public finances. What we are seeking to do is moderate the overall growth in expenditure. In regard to the Department of education, in fact, there was a significant expansion year on year. It increased funding compared to the 2025 Revised Estimates Volume, REV, allocation funding increase, by 10%, reflecting a clear expansion for the Department of education specifically. My Department is in ongoing discussions on funding for the Department of Education and Youth. That discussion and engagement is ongoing across Government relating to any further allocation for 2026.

The issue here is the question in relation to the €600 million. That is just a simple question; I do not think it is any more difficult than that. It is in relation to that €600 million. I have to be honest; I have never seen a budget like I saw this year. The sums do not add up. Anybody who can take out a calculator and take a look at the budget book will see that. If the Minister wants to publish something where the figures do not add up, that is fair enough but it causes huge confusion. I do not really know exactly what is happening in regard to budgets in this Government but, obviously, there are issues there. Perhaps it is something the Government could look at for next year but the question on the €600 million remains.

There is ongoing engagement with the Department of education. No decision has been made within Government on any additional funding at this point. There is a specific demand, particularly around special education, the demand of which was bigger than the budget forecasted and allocated. We are working constructively with the Department of education on that. When that concludes, I will be able to set out the broader context from a budgetary perspective. Some of the statements the Deputy has made are unfair. If she takes the quarter 1 position, as I have said, the aggregate variance from profile on spending shows an underspend of 1.6%. In fact, we are on profile or below profile across many Government Departments, which shows there is a much closer relationship between what was budgeted for and how Departments are spending, notwithstanding the challenge that exists within the Department of education and we are working with it on that. I will provide full, detailed information to the Dáil when that matter concludes within Government.