Spending increases by 6% but here’s the sting in the detail

FINANCE Minister Brian Cowen delivered a seemingly generous spending programme for 2005 yesterday - but it came with a nasty sting in the tail.

The Book of Estimates for 2005 shows Government spending will increase by €2.5 billion next year to €43.5bn, a rise of 6% on this year’s expected out-turn of €41bn.

As was widely flagged, the bulk of the extra funding will be channelled into health and education. Health spending will increase by €950 million, or 9%, to almost €11bn, with an equally significant rise in education, which sees its budget rise by €530m (8%) to €7.1bn.