Government spending figures for next year, being published today, will show a substantial increase in State investment in houses, roads and other infrastructural projects.
They will also show the overall increase from this year in day-today Government spending will be some 4 to 4.5 per cent, with sharper rises in most departments offset by declining debt-servicing costs.
The major spending increases next year will be in the public capital programme, which details State-supported investment spending and which is expected to be some 16 per cent ahead of this year. The exchequer contribution to this additional spending is to rise by 20 to 25 per cent. Most of the rest of the money comes from EU funds or existing reserves held by State bodies.
Much of the extra capital spending allocation goes to the Department of Environment, which is expected to get a rise of some 18 per cent to fund spending on roads, increased local authority house building and other infrastructural projects.
Further details of the State's longer-term investment plans will be announced on Monday, when the National Development Plan is unveiled. Additional resources will be provided by the private sector under the public/private partnership approach.
Today's figures will show day-to-day spending rising much more slowly than capital investment spending. The Government has been striving to keep the increase in current spending, including the cost of running Government departments and of servicing the national debt, to an annual rate of 4 per cent.
For next year, the estimates are expected to show a rise of 4 to 4.5 per cent and this will increase further on Budget day, December 1st. Pay increases will make up the bulk of the increase.
Savings on the national debt continue to benefit the overall figures. When these are excluded, the estimates will show that the cost of current spending on running Government departments will rise more quickly, perhaps by around 5.5 to 6 per cent.
Extra spending on Budget day will increase this figure with the rise in current spending bringing the total bill for day-to-day running of Government departments to almost £13 billion.
Many of the big-spending departments, such as Health, are believed to be getting overall spending increases of 5 to 6 per cent for day-to-day running. Some of the extra health spending will fund additional nurses' pay as well as a further attempt to reduce hospital waiting lists.
The other large-spending department, Social Welfare, will receive a far lower proportionate rise in its spending power. A rapidly falling live register means the Department needs less money, although increases in social welfare payments will also be announced on Budget day.
Some areas of current spending will get a higher level of increase, such as overseas development aid, where the bilateral aid budget is set to jump sharply.
The Department of Justice will be one of the big winners. The Justice budget might exceed the £1 billion mark for the first time as additional resources are sought for both prisons and the Garda. This would amount to an increase of almost 11 per cent.
The new Prisons Authority has been seeking additional funding in preparation for a major increase in the number of inmates likely to be held from next year as two new prison complexes come into operation in Dublin and Portlaoise. The prison population will grow significantly with the implementation of the terms of the 1997 bail referendum.
The Prisons Authority has also been seeking additional funding for a major education programme.
The special Garda pay increases are to be taken into consideration in the Justice budget.
