Written answer
Departmental Expenditure
A €446 million expenditure levy was applied to 2027 funding allocations, excluding Education and Youth, to meet fiscal ceilings and encourage efficiencies rather than reduce services. The Government said capital investment and key social supports would be protected, while departments are responsible for managing allocations and implementing reforms.
9. Deputy Peadar Tóibín asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation to provide, for each department, the expenditure levy amount applied from 2027; the specific measures submitted and approved to meet it; the posts to be supressed, programmes reduced and grants to State agencies reduced; the amount classified as efficiencies versus reductions in services; and if proposals by any department were rejected or remain unagreed. [74479/26]
Comment on this
The achievement of value for money in public expenditure is a Government priority, supported by a strong agenda for reform and efficiency. Public expenditure must be managed to maximise value for money for the taxpayer and support the delivery of Government priorities within the voted allocation, as outlined in Circular 18/2025 (Value for Money Obligations).
Earlier this year, the Government agreed that additional funding of €646 million would be provided to the Department of Education and Youth in 2026. To accommodate this reprioritisation and deliver on the 2027 ceiling agreed under the Medium Term Fiscal Plan, an Expenditure Levy of €446 million has been reflected in all Budget 2027 funding allocations, with the exception the Department of Education and Youth. A breakdown of the expenditure levy for each Vote Group has been provided to the Deputy.
In April, my Department wrote to other Departments highlighting the Government decision to apply an Expenditure Levy for 2027 and emphasise the need to achieve savings. The levy is not intended as an expenditure reduction exercise, rather, it is designed to encourage more efficient and effective delivery of public services.
In designing the levy, Government’s priority has been to protect a number of essential areas. That includes:
• Safeguarding capital spending to address infrastructure gaps and to ensure we can deliver the National Development Plan;
• Preserving social protection and social housing supports to ensure a strong social safety net for those who need it the most; and
• Minimising the impact on frontline staff led services in the areas of Health, Justice and Disability.
In September 2026, I wrote to all Ministers, asking them to identify efficiencies and reforms in the context of the Estimates process for Budget 2027. Reforms and efficiencies were published and are set out in the Budget 2027 documents.
The expenditure allocations for 2027 include the application of the levy and reflect not only efficiencies and reforms but also reprioritisation within the funding allocations of individual Departments, Offices and Agencies. This results from the trade-offs and choices that have been made during the Estimates process. It is the responsibility of each Accounting Officer to manage within their funding allocation for 2027. The details of individual efficiencies and reforms, along with their implementation, are a matter for each Department.
Levy amount by vote group