New expenditure control and escalation process to provide strengthened oversight, governance, and value for money agreed by Government

The Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers TD has today published details of the enhanced expenditure control and escalation process which will apply across Government to control expenditure growth. 

Circular 21/2026, which will issue to all Government departments, provides a clear framework for ensuring that public expenditure delivers for citizens in a way that is credible and sustainable.

In December, the Government published the Medium-Term Fiscal and Structural Plan, which sets out binding expenditure ceilings for Gross Total Voted Expenditure from 2026-2030, with an average annual growth rate of 6 per cent. This increased investment will allow Government to continue to support the delivery of critical infrastructure and improved public services. 

This new escalation process will strengthen effective budget oversight through enhanced governance and a focus on value for money, ensuring that expenditure ceilings are credible and deliver effectively on Programme for Government commitments. 

The escalation process provides a clear framework for managing expenditure and sets phases for escalation if spending overruns emerge. This escalation framework anchors fiscal discipline and expenditure control across Government.

Where there is a concern around a spending overrun, the Department of Public Expenditure may instruct other Departments to submit corrective action plans or enhance governance through the establishment of a Budget Oversight Group.

Where an issue persists, measures may be escalated and could include withdrawal of a department’s delegated sanction on expenditure measures.

The escalation process is designed to be transparent about the different phases of escalation and the available corrective steps. The process is clear in terms of accountability and what roles and responsibilities different Departments have in how public money is managed. 

Finally, the escalation framework is designed to be responsive to changes in expenditure, providing the flexibility to respond to overruns as they emerge. 

This new Circular builds on the previous Circular 18/2025 Value for Money Obligations, which set out the roles and responsibilities in securing value for money. In particular, this Circular underscores that the accountable person for managing public expenditure is always the relevant Accounting Officer for Voted Expenditure.

Commenting today, Minister Chambers said:

“This Circular sets out the phases of an expenditure control framework to be used across Government. It outlines the various tools and levers that may be implemented where expenditure risks and overruns are identified.

“Government has set out increased investment as part of the Medium Fiscal and Structural Plan with expenditure expected to reach €147.3 billion by 2030. To ensure this significant level of investment delivers on Programme for Government commitments and value for money, there is a need for a strengthened expenditure control environment and renewed focus on fiscal discipline. 

“In addition, I am also clear that departments should ensure that they pursue efficiencies and reforms to identify savings within their allocations to ensure that they maximise the impact of public resources.”

ENDS

Notes to the Editor:

• Circular 21/2026 outlines a formalised and consistent escalation framework for managing expenditure overruns. The Circular builds on Circular 18/2025 Value for Money Obligations and reinforces the message that the accountable person for managing public expenditure is always the relevant Accounting Officer for Voted Expenditure.
• It sets out phased escalation stages and necessary corrective actions for managing emerging expenditure pressures, and the range of measures available to the Department of Public Expenditure where expenditure is at risk of breaching agreed ceilings.
• The process commences with the annual Letter of Delegated Sanction being issued to Departments. This letter sets out the allocations and sets binding conditions for Departments and bodies under their remit, including the potential controls that may apply where expenditure diverges from plan.
• DPER conduct monthly monitoring of both current and capital expenditure, and regularly engage with Departmental and HR Units to assess spending trends and to identify emerging pressures. Where monitoring identifies emerging risks, Departments are required to explain the drivers of overruns and set out the corrective actions. Where mitigation is deemed to be insufficient, these issues will be escalated to senior management. 
• Where expenditure pressures persist, the Circular sets out a framework for when and how DPER may engage with Departments. These steps are focused around strengthening governance, reprioritising expenditure within Departments allocations, and ensuring that overruns are addressed in a timely manner.