Minister for Public Expenditure delivers budget in Dáil Éireann
Below is the full speech delivered by Minister for Public Expenditure and Reform Paschal Donohoe in the Dáil on October 10th,A Cheann Comhairle, recent budgets to this House have responded to Brexit, to a pandemic, to the war in Ukraine, and now to the rising cost of living. In response to all of these challenges, Government has helped.Ask the experts your Budget 2024 questionsAll of this was done from a position of strength.
This economic resilience, the importance of carefully managing our public finances is, at times, a difficult argument to make – making the case for not spending every cent we have. a €300 lump sum payment will be made to recipients of the Fuel Allowance in the last quarter of this yearfor those in receipt of regular Social Protection payments, I can confirm to the House that the Christmas Bonus will be paid in early December
to ensure that our supports are targeted to the families that need them most, I am also announcing that a €400 lump sum payment will be made to recipients of the Working Family Payment later this year; recognising that the rising costs also have impacts for businesses across the country, I am today announcing a scheme of business supports worth €250 millionThe payments I have announced are substantial. They are needed because the cost of living is still rising.
We entered 2023 in a strong position. Our resilience in the aftermath of the pandemic and energy price shocks is mostly due to the public spending policies that this government has pursued over the past number of years. These policy choices did not happen by accident. The past year and a half has seen a dramatic increase in the number of people arriving to our shores seeking our protection.
In addition to direct supports to family income that I outlined as part of our Cost of Living package, I am announcing the following permanent changes to our Social Protection payments, specifically targeting the wellbeing of children: we will increase the statutory foster care rate by the end of 2024 by €75 per week for children under 12 and €73 per week for children over 12, bringing it to €400 and €425 per week respectivelyEducation is vital for investment in supporting our children and our future. That is why this Budget will allocate €10.5 billion to the Department of Education in 2024, including a capital budget of €940 million.
Further measures include capitation payments to schools from the beginning of 2024 and a €50 million increase in funding for School Transport.While providing supports we also need to ensure our welfare system improves living standards and helps all people to fulfil their potential. Further to this, my colleague, the Minister for Social Protection, will work with the Minister for Finance to provide a payment, where necessary, through the Department of Social Protection. The details will be worked out following the Budget.
Taken together, the measures we are introducing throughout the remainder of this year and next year represent substantial levels of State support for our most vulnerable. €90 million to the retrofitting of social housing in 2024, demonstrating the State’s commitment to help people reduce their energy bills and to ensure Ireland meets our climate targets
Budget 2024 continues the very high level of investment in our public health system by providing for a total allocation of €22.5 billion. This includes an €808 million increase in core current funding to address demographic and service pressures. Accordingly, this resilience funding will be accompanied by a programme of initiatives to improve financial oversight across the health system, as part of the progressive reform agenda. This programme will be finalised by year end.
€1.23 billion is being provided as part of the National Development Plan for the delivery of additional health infrastructure to enhance the wider sustainability of our health system.Turning again to education, investing in further and higher education is investment in innovation, creativity, and our future. In 2024, I am committed to allocating over €4.1 billion to these sectors.
I want to turn briefly to the matter of the National Training Fund which plays a vital funding role in how we future proof the skills needs of the labour market and ensure workers can readily access lifelong learning opportunities. As a government we have invested heavily to protect enterprises through the challenges of Brexit, Covid and the ramifications of the energy crisis. The fruits of this support can be seen across a range of economic measures, not least the fact that over 2.6 million people are now employed in our economy.
Today, I am providing an additional €900 million in 2024 for essential investment in providing more schools, hospitals infrastructure and for better public and road transport. The Infrastructure, Climate and Nature Fund will protect capital expenditure in the event of an economic downturn, enabling continued investment in large scale economic projects that can drive growth.A further plan, the Climate Action Plan will deliver positive change for our climate while improving the lives of communities across Ireland.
Individual households, schools, farms, local businesses and community enterprises, including sports clubs and community halls are all eligible for support through schemes that have already installed solar panels on 70,000 buildings across the country.Applying an appropriate price to the climate harmful effects of carbon through the carbon tax remains an important measure as we work together to meet our climate goals.
An additional €32 million in carbon tax funding will be provided to the Department of Agriculture, Food and the Marine next year to support up to 50,000 farmers to improve biodiversity, climate, air and water quality outcomes. As part of the Cost of Living Package, the eligibility for the Young Adult Card is being extended to cover adults aged 19-25.
Our transport infrastructure is just one of the means of keeping our communities connected. Digital innovation has allowed our communities to stay connected even when we are physically apart.The National Broadband Scheme is at the heart of our digital connectivity. Of course, as our dependence on digital networks increases so too does the risk of disruption to them. The government is determined to protect Irish citizens and their data as well as digital infrastructure and services.
In addition to the core funding of €410 million for Rural and Community Development for 2023, I am providing a targeted social inclusion support of €11 million to provide assistance to new arrivals through the Social Inclusion and Community Activation Programme. Over €700 million is being provided in 2024 for farmers participating in agri-environmental actions, including through the Agri-Climate Rural Environment Scheme, Areas of Natural Constraint Scheme, Forestry, Organic Farming and other agri-environmental schemes.
I am pleased to announce funding for recruitment next year of 1,000 Gardaí and up to 250 Garda civilian staff in specialist roles and to free up more Gardaí for frontline policing duties. This funding will further progress the priority recommendations of the Commission on the Defence Forces and the Independent Review Group as well as funding the first year of the Tribunal of Inquiry.
In 2023, Ireland provided the highest ever level of Official Development Assistance, in cash terms and as a percentage of our Gross National Income. I am proud that we have met the twin challenges of providing for war refugees without losing sight of other crises, including the drought in the Horn of Africa and the catastrophic floods in Pakistan.
The €1 billion of funding reserved for Ireland from the Brexit Adjustment Reserve is the largest single allocation for any Member State, and continues to help counter the adverse economic and social consequences of Brexit across a range of sectors. Performance-, Equality-, Green-, and Well-being budgeting along with the Spending Review process are all examples of how we are refining the process in the decision-making of funding allocations.
Of course, I would expect that the significant package of Cost of Living and taxation measures provided for in this Budget, which will benefit public servants, would be appropriately factored into those discussions.And we will enter these discussions in a world that continues to change, and change quickly.
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