Published on Wednesday8thFebruary2017

New Approach to Reviewing Government Public Spending

20170208Pachal Government Spending Review

Public Expenditure Minister Paschal Donohoe announcing anew approach to reviewing Government public spending

Public Expenditure and Reform Minister Paschal Donohoe has informed the Government of the new approach that will be taken to review current Departmental expenditure in advance of Budget 2018.

In light of the fact that the economic and fiscal context has changed significantly in recent years, and since the last Comprehensive Review of Expenditure was undertaken in 2014, Minister Donohoe is undertaking a review which will inform negotiations for Budget 2018.

Minister Donohoe said:

On Budget Day, on 11th October of last year, I announced my intention to undertake a review of Government day-to-day spending so that we can ensure the best value for money for the taxpayer. The design of the approach I am taking reflects this and also reflects lessons set out in the paper Spending Reviews in Ireland: Lessons for the future, which was published by my Department on the same day.

The purpose of reviews such as this is to broaden the Government's toolkit within the budgetary process by creating fiscal space for funding new policies from within existing Department budgets through a systematic review of the existing cost base. This year’s spending review will examine a significant portion of the expenditure base for each Department, with the remaining current expenditure to be examined over a three-year horizon.