The Minister for Public Expenditure, National Development Plan Delivery and Reform, Paschal Donohoe TD, today Wednesday 19 July, published the Mid-Year Expenditure Report 2023. Publication of the Mid-Year Expenditure Report (MYER) follows that of the Summer Economic Statement (SES) earlier this month, which set out the economic and fiscal context for Budget 2024 preparations.
The MYER provides the context for expenditure in Budget 2024, with additional detail on the expenditure strategy set out in the SES. It outlines the parameters that will support significant investment in our infrastructure through the National Development Plan, delivering a greener, more efficient and innovative economy, building houses and schools, and ensuring public services effectively support our growing and changing population.
The 2023 MYER reports on the expenditure trends for the first half of 2023, which has seen gross voted expenditure of almost €42 billion. This includes non-core spending on measures to assist with Cost of Living pressures and our humanitarian response to the war in Ukraine, as well as Covid-19. The Report outlines where this non-core funding is providing support towards the temporary challenges our society is facing.
An overview of recent trends in expenditure is contained in the report, detailing some of the key areas where the increased investment in public services and infrastructure is delivering improved services, supporting productivity and economic growth, and future proofing our economy against challenges to come.
Additional detail on expenditure plans for the upcoming Budget is also outlined. Budget 24 will see €91.2 billion in core spending, €4 billion in non-core funding, and a further €¼ billion for additional capital investment funded by windfall tax receipts. The increase of 6.1% in core spending planned for 2024 allows for a continued smoothing out of the impacts of recent elevated inflation, balanced against the need to ensure ongoing fiscal sustainability.
Given this level of spending, ensuring it is delivering better outcomes and providing value for money is essential. In this context, the MYER provides an update on the ongoing work being undertaken in the Department of Public Expenditure, NDP Delivery and Reform on Embedding Evaluation and Better Public Service Delivery, including the work under the Spending Review process.
Commenting on the publication of the MYER, Minister Donohoe said:
“Budget 2024 will see a total of €95½ billion in expenditure being made available. Through this spend Government will continue its responsive approach to fiscal policy. This will allow us to both increase investment in the public services and infrastructure we use every day while also continuing to provide supports towards meeting temporary challenges.
Recent years have seen increased public spending to provide for a growing population, deliver improvements in our public services and build critical infrastructure. This has supported our economy and our people while investing in the longer term needs of our population.
Budget 2024 will continue this investment. Core expenditure – ongoing spending on frontline services such as healthcare, education and policing as well as investment in infrastructure – will increase by €5.2 billion in the upcoming Budget. This will provide supports for our hospitals and schools and further investment in childcare.
As we invest in the long term needs of our population and deliver effective public services, it is important that we continue to employ the best evidence to inform decision making through the use of performance budgeting, green budgeting, wellbeing frameworks and our spending reviews.
Overall this report sets the context and the parameters on which I will be engaging with my colleagues in advance of Budget 24 to deliver on the core ambitions of this Government to provide better public services for our growing population, invest in our future, and respond to our current challenges in a meaningful and sustainable way.”
ENDS