Health emerges as one of the biggest beneficiaries at 11%, education up 8%

The Minister for Finance, Mr McCreevy, has focused the bulk of his largesse in next year's spending plans on capital expenditure…

The Minister for Finance, Mr McCreevy, has focused the bulk of his largesse in next year's spending plans on capital expenditure. Exchequer spending in this area is to rise by 26.6 per cent to £2,103 million.

Looking at day-to-day spending, Mr McCreevy is unlikely to stay below the 4 per cent ceiling in the Budget in three weeks' time. The Estimates show £1 billion added to current spending, bringing the total to £11,940 million, with further spending on social welfare and other areas due to be added on Budget day.

As expected, the bulk of the money in next year's Estimates goes to the big-spending Departments, covering health, environment, social welfare, road and rail infrastructure and education.

In the midst of continuing disputes over ward closures and hospital waiting lists, health has emerged as one of the biggest beneficiaries. Spending on the health services will increase by some 11 per cent to £3,129 million.

READ MORE

According to the Minister for Health, Mr Cowen, for every £4.50 now spent in public money, £1 goes to the health services. However, there has been no clarification on spending which might ease the emotive issue of waiting lists and patients must wait until next month's Budget to see how the problem is to be addressed.

Education is to see an overall increase of more than 8 per cent in its 1999 allocation. One of the main features in the first-level education budget of more than £837 million is the increase to £60 (up £10) in the capitation grant paid for each child in primary school. There is to be an increase of about 40 per cent for capital costs and building programmes in primary and secondary schools.

Third-level and further education is to gain by 15 per cent, with the overall Estimate for 1999 standing at over £614 million. How ever, it is not clear if the increases are sufficient to satisfy teachers' unions, who have not ruled out the possibility of further industrial action over staffing levels.

With the Government allocating £2,763 million on social welfare services next year, spending in this area is expected to be 3 per cent higher than in 1998, before any Budget increases are taken into account. Pressure from voluntary and community groups for a generous Budget on December 2nd is likely to increase following the revelation that spending on social welfare will probably be £117 million less than expected by the end of this year.

Because of the drop in the number of people out of work, the cost of unemployment assistance is to fall by 13 per cent in 1999.

The Estimate for the Department of Social, Community and Family Affairs does not include spending on benefits or pensions funded by PRSI contributions.

For the first time next year, PRSI contributions are expected to cover the full cost of non-means-tested payments. Because of the housing crisis, the Government has decided to inject an extra 18 per cent into local authority housing to allow 4,500 house starts next year. This represents an increase of 600 starts, the highest level since 1986.

Private housing grants and subsidies receive a 4 per cent increase, bringing the overall estimate to just under £39 million.

While local authority and social housing programmes have been allocated just over £268 million altogether in the environment and local government Estimate, the money for road improvement and maintenance is to drop by 30 per cent on the 1998 figure as motor tax receipts will now go to a special local authority fund to help maintain non-national roads. The allocation for Dublin transportation rises by 141 per cent to almost £23 million.

As the Minister of State for Foreign Affairs, Ms Liz O'Donnell, last week opened up the possibility of resigning over the Government's allocation in Overseas Development Aid, particular attention was concentrated on the Estimate for this area. In spite of the political controversy surrounding the issue, Ms O'Donnell has seen her overseas aid budget virtually frozen at £139 million.

The figure represents just a £2 million increase on 1998; however, expressed as a proportion of GNP, this is a steep decline and runs counter to the Government's commitment to increase this kind of assistance. The overall foreign affairs Estimate is up 3 per cent but there is a 68 per cent drop in spending on North-South and Anglo-Irish co-operation.

Just two weeks after 40,000 farmers took to the streets of Dublin in protest at falling incomes, the 19 per cent increase in the agriculture Estimate indicates some political anxiety and the need to assist the sector.

Agriculture and Food will receive £449.8 million next year, which has drawn a mixed reaction from the farm organisations.

While the issue of family income supplement demanded by the IFA is being addressed in the Budget, the reintroduction of funding for agri-environmental schemes suspended some years ago will go some way towards showing Government good will to the farming community.

The money allocated for administering the presidency - or what is referred to as "the President's establishment" - will rise to £861,000, an increase of 14 per cent over the 1998 figure. This includes salaries, wages and allowances, travel and incidental expenses as well as office costs.

A 16 per cent increase is being allocated to cover the salaries and expenses of the Houses of the Oireachtas, bringing the overall Estimate to £39,799,000. Certain grants are included in this figure, in addition to expenses connected with the European Parliament.

The Estimate covering TDs' salaries - including office-holders and committee chairs - increases by 10 per cent, to £6,781,000; expenditure on senators' salaries rises by the same amount, bringing the final figure to £1,536,000.

The most dramatic increase applies to "other allowances and expenses" of TDs and senators - 85 per cent and 90 per cent respectively. Allocations in this area rise to £4,172,000 in the case of TDs and £964,000 for senators.

In spite of the increase in Government spending, the science budget has suffered a 2 per cent cut. It is estimated that the decrease will force cuts of £475,000 in a budget of just over £25 million in 1999.

Meanwhile, obviously anticipating a dry 1999, the Minister for Finance has allowed £163,000 for "flood relief" - grants which may be used in home-relocation assistance. The figure represents a drop of 36 per cent on 1998.