Minister for Public Expenditure and Reform Brendan Howlin has criticised fellow Ministers who preach fiscal rectitude while demanding more money for their Departments in the upcoming Budget.
Speaking on his way into Cabinet, Mr Howlin said the Spring Economic Statement had set out the fiscal space available to Government this year.
“We now live in a new world. The economic rules are set not only in domestic law here but in European law. We have to live within them. So all Ministers and indeed all commentators now what the fiscal space is.”
He said he had asked all Ministers to present spending plans to him.
The Irish Times reports today that Ministers have upped their demands.
Submissions for big increases in spending on justice, education and other services come on top of demands for a major advance in health expenditure.
“I don’t think it’ll be a stunning shock to the world to know that Ministers want more money than the money than is available,” Mr Howlin said.
“In four budgets so far, this will be by fifth budget, that has been my experience, that Ministers — even those who espouse fiscal rectitude — when they actually control a line Department are anxious to spend more than the fiscal space allows.”
Taoiseach Enda Kenny said Mr Howlin was right. Demands for increased spending were an annual occurance, he said.
Mr Kenny was going into Government Buildings for the Cabinet meeting after Mr Howlin had made his remarks about the Budget.
“Government have got to be very prudent about what we have to do here,” Mr Kenny said. “We are not going to disrupt the competent management of the economy that has been shown by the Government. That’s in the people’s interests and that’s what people want.”
He said choices has to be made. “It’s not going to be a situation where the Government are going to go and blow all of the success that has been achieved by the people over the last number of years.”