Government spending to fall by €3bn this year

THE GOVERNMENT is to spend €3 billion less this year than in 2010, according to the revised estimates for public services published yesterday.

The 5 per cent decrease means that an estimated €57.5 billion will be spent by the State this year. The Department of Finance describes the figures as being of “a largely technical nature”.

Some of the spending estimates have been supplemented with additional information which will allow better evaluation of whether objectives are being achieved. This “performance budgeting” technique is due to be extended to all areas of expenditure in 2012.

As indicated in the budget last December, capital expenditure will bear the brunt of the expenditure cuts, with spending on capital projects to be cut by 25.4 per cent compared to 2010 to €4.7 billion. Gross current expenditure will be 2.7 per cent lower, at €52.8 billion.

The estimates give a fuller breakdown of spending by each department than provided on budget day. A breakdown of the total voted current expenditure shows that 39 per cent of the €52.8 billion to be spent has been allocated to social protection, 27 per cent to health and 16 per cent on education.

In terms of capital expenditure, 11 per cent will go on enterprise, 22 per cent on road transport and 8 per cent on public transport.

The budgets of Dublin’s five main teaching hospitals have been cut by over €73 million this year.

St James’s Hospital, which will have €20.4 million less to spend in 2011, faces the biggest cut.

Beaumont Hospital’s budget is down €15 million, the Mater’s is down €13 million, St Vincent’s is €13 million less and Tallaght Hospital is down €11.8 million.

Our Lady’s Hospital for Sick Children in Crumlin has had its budget cut by €7.6 million while Temple Street Children’s Hospital is getting €4.7 million less.

The three main maternity hospitals in Dublin, which are already struggling to cope, have had their budgets cut by total of €8.7 million. Our Lady’s Hospice in Harold’s Cross will have to contend with a budget cut of €1.8 million, while the National Rehabilitation Hospital, which has long waiting lists, will have to cope with €1.5 million less in funding in 2011.

A number of voluntary agencies, which threatened to cut respite services due to budgetary difficulties in 2010, are also having their budgets slashed. Meanwhile, €1.5 million extra is being set aside for consultancy services and value for money and policy reviews by the Department of Health.