Minister McGrath updates Cabinet on 2021 Year End Expenditure Position

The Minister for Public Expenditure and Reform, Michael McGrath TD, today (Tuesday 25th January), updated Cabinet on the end of 2021 expenditure position and the expenditure outlook for 2022.

Total overall gross voted expenditure for 2021, as set out in the December Fiscal Monitor was €87.5 billion. This overall spending was €1.4 billion or 1.5% below the full year allocation for 2021 and was €2.3 billion or 2.6% ahead on the 2020 end year position.

Speaking on the expenditure position, Minister McGrath said:

"The end year position in 2021 shows the significant support provided by the Government throughout 2021 in response to the ongoing Covid 19 pandemic. Gross Voted Expenditure in 2021 reached €87.5 billion. This included some €13.5 billion provided to support people, the economy and public services in dealing with the impacts of Covid 19.

“An unprecedented level of support has been provided to sustain the economy and livelihoods including in excess of €8 billion through the Employment Wage Subsidy Scheme and the Pandemic Unemployment Payment. In addition, over €2 billion was allocated to our Health and Education sectors to ensure these important public services could operate effectively in dealing with the challenges of Covid-19.

“Notwithstanding the improving Covid situation, Government recognises the importance of not having a cliff edge in terms of supports. We have taken a prudent approach to Budget 2022, providing €3.1 billion additional funding for measures to address the challenges of Covid in department’s estimates for this year. A further €3.9 billion is being held in reserve to be allocated during 2022 as needed. This has ensured that the necessary resources are available to extend the key support measures in response to Covid.

“The true lasting legacy of the pandemic will be the long term improvement of public services for the benefit of all. Budget 2022 provided allocations for significant investment across our public services with core spending expected to reach €80.1 billion. This level is consistent with the sustained reduction in the deficit to which we committed to in the Summer Economic Statement.

As we reopen our economy, and through our medium term expenditure strategy, we will emerge from the pandemic, improve our public services and place our national finances on a sustainable path once again. "

ENDS

Notes for Editors

Current Expenditure

Current expenditure made up €77.6 billion of Government spending in 2022. The gross current outturn was €0.8 billion or 1.0% behind profile and was €2 billion or 2.6% ahead of 2020.

Capital Expenditure

Gross voted capital expenditure at the end of 2022 was €9.9 billion, €580 million below profile which in part reflected the closure of large parts of the construction sector in the early months of the year. When account is taken of capital carryover from 2020 spent in 2021, the increase in capital spending compared to the prior year is over €600 million or 7%.

Covid Expenditure

Covid-19 continued to have a significant impact on spending during 2021, with some €13.5 billion provided for measures to support our people and businesses impacted by the ongoing pandemic and to provide the necessary funding to our key public services to allow them to respond effectively to the crisis.

2022 Estimates

The Revised Estimates for Public Services 2022 (REV) published in December outlined an overall gross voted expenditure of €87.6 billion for 2022. €80.1 billion of this amount has been allocated for core expenditure. This additional funding will address Government priorities, allowing for improved delivery of key public services and social supports and a record capital allocation to address our infrastructure challenges.
The 2022 expenditure ceiling also reflects continued significant funding for our public services to address the challenges of Covid-19 with provision for up to €7 billion, including investments under the National Recovery and Resilience Plan (NRRP). €3.1 billion of this funding has already been allocated at Departmental level while €3.9 billion remains held in reserve as contingency funding in order to allow Government to respond to challenges posed by the virus this year. Further allocations from this reserve will be made during the year, as required, to provide for costs related to the extension of supports in response to the Omicron wave.
Further additional funding remains to be allocated during 2022, primarily over €0.4 billion for measures under the Brexit Adjustment Reserve.

Contact:

Claire Godkin - Press Officer, Department of Public Expenditure and Reform - pressoffice@per.gov.ie