Budget 2016: Ministers pile on pressure for more funds

Spending on further 900 teachers and 500 Garda trainees sought by Ministers

Spending demands from Ministers are set to reach to multiples of the amount the Government has already set aside for Budget 2016 next month.

Submissions for big increases in spending on justice, education and other services come on top of demands for a major advance in health expenditure.

After years of cutbacks, the submissions include requests for hundreds of new teachers, gardaí and Defence Forces personnel.

Minister for Education Jan O’Sullivan has sought funding to recruit some 900 new teachers and Minister for Justice Frances Fitzgerald has included a request to recruit about 500 garda trainees in a list of “20 to 30” spending demands she has submitted.

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The clamour to increase funding across the board will intensify political pressure on Minister for Public Expenditure Brendan Howlin as he strives to divide a limited pot between competing Ministers.

“There’s a big gap between ministerial expectations and what’s available,” said a senior Government figure.

The Government resolved in the spring to introduce a budget package of up to €1.5 billion in October, divided equally between measures to raise spending and cut taxation. That decision put an upper limit of €750 million on increased spending next year.

Public pay and pensions

However, the amount now in play is closer to €200 million. The Coalition has already reserved €350 million for a rise in public pay and pensions and another €200 million is needed for measures previously settled but not yet funded.

With the Health Service Executive seeking a spending increase not far off €2 billion, officials examining the proposals are concerned that some Ministers and their departments have failed to absorb the force of spending constraints on the Government under European budget rules.

“The learning exercise is still to take place,” said an informed source. “There is a sense of departments dusting down files they had in 2007.”

Figures to be released on Wednesday are expected to reveal a continued acceleration in economic growth in the second quarter of this year, an advance which comes amid a surge in tax revenue.

The Department of Finance is preparing to upgrade its 2015 growth forecast next week from the 4 per cent advance in gross domestic product which was foreseen in the spring economic statement.

Still, Ministers have been repeatedly told there is no scope for an increase in the budget package of between €1.2 billion and €1.5 billion.

Health would be the likely beneficiary of any emergent flexibility, but informed sources insist they see no prospect of the HSE’s demands being met.

A spending bid for social protection spending is still to come from Tánaiste Joan Burton, as is the proposal from Minister for Children James Reilly. Dr Reilly’s proposal is crucial as it will embrace a proposal to boost childcare services.

Ms O’Sullivan received funding this year to engage 900 new teachers, 600 at primary level and 300 in secondary schools. However, her department believes a further 900 teachers will needed in 2016 to meet demographic pressures, with a similar rise required in both 2017 and 2018.

In addition to a continuation of Garda recruitment, Ms Fitzgerald’s submission includes requests to tackle deficiencies in the fleet of Garda cars and the prison service computer system.

She has also sought increased funding for the Irish Human Rights and Equality Commission.

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times