895. Deputy Cian O'Callaghan asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation the process of establishing a Budget Oversight Group under Phase 5 of the new Expenditure Control and Escalation Process; the person or body that decides the establishment of such a group is necessary; if there is specific criteria, thresholds, or indicators that automatically lead to the establishment of a Budgetary Oversight Group; if there is a process for ending a Budgetary Oversight Group; and if he will make a statement on the matter. [56930/26]

In May, I published Circular 21/2026 "Expenditure Control and Escalation Process", which issued to all Government departments and provides a clear framework for managing expenditure and sets phases for escalation if spending overruns emerge. 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. Where expenditure pressures persist, the remaining phases outline a framework for how DPER may engage with Departments to address overruns. These steps are focused around strengthening governance, reprioritising expenditure within Departments allocations, and ensuring that overruns are addressed in a timely manner. DPER will determine phases on case-by-case basis and phases are non-sequential.

Under Phase 5, a Budget Oversight Group (BOG) may be established where a Vote Section within my Department determines that there is an ongoing problem around financial management and fiscal discipline within the Department. The Vote Section advises the Minister for Public Expenditure that this new BOG has been established. The Circular does not outline any specific criteria, thresholds or indicators that automatically lead to the establishment of BOG. The exact role and purpose of this group will require Vote Section judgement, but at a high level the primary purpose of the group will be to monitor and control expenditure within the Budget allocation. The work of the group may also include discussions on better governance structures regarding expenditure, and discussions on thematic policy matters relating to governance, ongoing reforms, and efficiency initiatives. The Circular does not specify the length of time for which a BOG may remain operational; its duration is determined by the judgement of the relevant Vote Section within my Department.

Budget Oversight Groups are one phase of a broader framework outlined in this circular designed to support expenditure management across Government. Ultimately, responsibility for managing expenditure within approved allocations rests with each Department and its Accounting Officer. My Department will continue to work closely with Departments to strengthen governance, improve value for money and ensure adherence to the expenditure ceilings agreed by Government.