Minister for Public Expenditure and Reform, Michael McGrath TD, announced that preparations for Budget 2022 are under way and the Government is committed to delivering on the key commitments in the Programme for Government.
In an update to Cabinet on the expenditure management and spending strategy for Budget 2022, the Minister detailed that Budget estimates for 2022 will include a €4.2 billion increase in core expenditure, comprising €3.1 billion in current expenditure and €1.1 billion in capital expenditure.
The Minister said: “The baseline position for negotiations was set out in the Mid-Year Expenditure Report and the expenditure ceiling for 2022 of €88.2 billion was outlined in the Summer Economic Statement.
“The Government is focused on delivering in respect of the key commitment in the Programme for Government in the areas of Health, Housing and Climate Change, and other pressing challenges. This will be done within the fiscally prudent framework we have set out which charts a clear path to reducing the General Government Balance to 1.5% of GDP by 2025. By 2023, it is intended that Government borrowing would only be for capital investment purposes.”
The Minister also noted that provision for a further €6.8 billion has been made for Covid expenditure next year.
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