GENERAL SAVINGS:THE BULK of the €140 million in "general administrative savings" which the Government says will be achieved this year will come from efficiencies and savings arising from the non-payment of a pay increase in September this year.
This item was the second biggest saving listed on the current expenditure side by Taoiseach Brian Cowen yesterday, after the €1.4 billion in savings achieved by the new pension levy.
Some €50 million of the €140 million relate to the non-payment of the scheduled increase in September. Last autumn the Government also asked departments to find savings from inside their budgets. That resulted in better management of vacancies, dramatic reductions in performance related pay as well as a curtailment of overtime payments. In addition, departments were asked to be more efficient in their management of maternity leave secondments.
A further €50 million will be achieved, says the Department of Finance, through further reductions in spending on public relations, advertising and consultancies. While the budget in all those areas was cut by half in the plan announced last summer, the Government now believes there is room for further reductions. That will be brought about in two ways, said a spokesman for the Department of Finance, through less contracts being awarded and by achieving better value-for-money in a market that has become more competitive.
In addition, some €25 million will be gained by the reduction of everyday costs in departments and State agencies. These include day-to-day expenses, travel and subsistence allowance.
Recent deflation in addition to a contracting economy has also led to a situation where procurement can be obtained at a more competitive cost, according to the department.