The Government has cut back spending substantially on capital projects such as childcare and infrastructure, including roads, but increased its day-today spending, figures released yesterday have revealed.
The switch in spending has been prompted by the need for greatly increased spending to combat BSE and by delays in implementing the £40 billion-plus National Development Plan.
Current spending - money spent on the day-to-day running of the State - is set to rise by 21 per cent compared with last year, when the Government also greatly increased spending.
At the same time the amount earmarked for capital projects such as hospital and road building has dropped by more than £300 million since last November as delays in construction and planning slow down implementation of the National Development Plan.
Overall, capital spending will amount to £3.69 billion in 2001, an increase of £651 million over 2000 but less than the £3.94 billion allowed last November. Among those affected are the Department of Health, which has £15 million less to spend on capital projects, and Education and Science, where the budget has been cut by £29 million.
The Department of the Environment will spend £444 million more than last year, down from £483 million estimated last November. In percentage terms, one of the largest adjustments is at Tourism, Sport and Recreation, where £42 million is now earmarked for all capital schemes. Last November £63 million was allocated, primarily for Sports Campus Ireland.
Childcare has also taken a hit. The Department of Justice was expecting £61 million last November in capital funds, primarily for childcare provision. It is unclear what that has fallen to now but the childcare estimate has dropped to £25 million.
In contrast, day-to-day spending is running rapidly ahead. Since the abridged estimates were published in November, the Department of Agriculture estimate has seen a massive rise of £273 million, mostly to pay for EU measures to deal with the cost of BSE. The figures do not include any provision to deal with the fallout from the foot-and-mouth outbreak. There has also been a 16 per cent rise in daily spending at the Department of Social, Community and Family Affairs.