295. Deputy Richard O'Donoghue asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation given the Committee recommended that currently known and expected overruns should be incorporated into and reflected in all budgetary documentation, and that supplementary estimates should not be used regularly, his plans and associated timelines for this to be the case; and if he will make a statement on the matter. [11619/26]

I thank the Deputy for his question.

Budget 2026 set out a gross total voted expenditure ceiling of €117.8 billion. This reflects an increase of €8.4 billion or 7.7% over the end-2025 expenditure figures. This level of investment will provide for transformative critical infrastructure to support the delivery of housing, strengthen Ireland’s competitiveness and economic resilience, sustain our economic growth, and enhance our public services to deliver improved outcomes for the people of Ireland. For context, this compares to growth in gross voted total spending of €5.7 billion or 5.5% between 2024 and 2025.

Budget 2026 was informed by the findings of Medium-Term Expenditure Framework, published in August 2025. The budget strategy was developed using a whole of budget approach, which places a strong emphasis on the totality of expenditure, linking investment to improved outcomes, and prioritising value for money.

The extent to which expenditure overruns facilitated through supplementary estimates should be incorporated into future years budgets risks embedding inefficiencies into the base and undermines the need for meaningful reforms to be developed and implemented. Budget 2026 placed a strong emphasis on reforms and efficiencies, and these are set out in detail for each Vote Group in Part II of the Expenditure Report 2026.

In addition, 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. It is the responsibility of the Accounting Officer for each Department to ensure that they manage expenditure sustainably and in accordance with this allocation.

In December of last year, the Government published the Medium-Term Fiscal and Structural Plan. Grounded in the Programme for Government, the plan sets fixed expenditure ceilings out to 2030, with total spending increasing from €117.8?billion in 2026 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. This performance will be monitored by my Department and reported monthly through the Fiscal Monitor. The Fiscal Monitor is published on the third working day of each month and sets out both gross and net year-to-date current and capital expenditure figures for each vote group. The report also details expenditure against profile as well as year-on-year performance.

As we begin the year and the implementation of Budget 2026, we remain focused on delivering value for money, strengthening our public services while moderating current spending and focusing investment on the critical infrastructure needed to improve living standards for our people and enhancing our competitiveness. As set out in the January Fiscal Monitor which was published on Thursday 5th February, spending is 5.1% higher than it was this time last year – within the overall budget parameters of 7.7% growth for this year. Careful expenditure management across all departments is critical to ensuring we can deliver on our Programme for Government commitments this year and over the medium term.