McCreevy announces €123m extra spending in revised estimates

THE Revised Estimates for 2004 published by Minister for Finance Charlie McCreevy yesterday show spending increases of about €123 million more than the amounts provided for on Budget Day.

However, the minister told the Dáil yesterday that the increase in spending would be more than offset by higher-than-expected revenues, which would total €129m, leaving a net decrease in spending of €6m.

The Revised Estimates reflect the spending totals announced in December’s Budget along with adjustments that have been approved since then.

The biggest increase will be the extra €58m that has been allotted to the Social Insurance Fund. Mr McCreevy said yesterday it would provide for increasing demand for payments of old age, disability and illness benefits.

However, he said the cost of this would be funded by higher PRSI receipts and would not have an effect on the general Government balance.

The minister has also agreed to an extra €14m for the Department of Communications, Marine and Natural Resources. The funds will go towards broadcasting, petroleum services (up to €2.5m compared to only €50,000 in 2003) and mining services (for which over €2m is earmarked).

The Department of Justice and the Garda will also benefit to the tune of an extra €11m, which will go to asylum services, the Criminal Assets Bureau and additional Garda services. Higher CAB receipts from criminal tax defaulters is expected to offset all but €1m of these funds.

The islands and Gaeltacht areas will also benefit by some €7m, with the additional allocation being paid for by higher than anticipated EU receipts.

The other areas for which Mr McCreevy has announced more funding include forestry and the Abbey Theatre Centenary (up €1m).

Reflecting Ireland’s increased commitment to international peace-keeping duties, the minister yesterday announced that he would be allotting an extra €5m to the overseas allowances of the Defence Forces.

The total anticipated expenditure for the year is now estimated at €32.9 billion, of which €5.5bn is earmarked for spending on capital projects and infrastructure.

It represents a year-on-year increase of 7%, compared to 2003.

The Revised Estimates contain no major adjustments or surprises.

“Net spending in the 2004 Revised Estimates will therefore be almost exactly the same as that provided for on Budget Day,” Mr McCreevy stated yesterday.