Department of Health overspend solutions could hamper election promises

The Department of Health will either have to cut services, seek new taxes, or take money from other departments if the health system overspends again next year, which will cause havoc to election promises.

The warning has been made by both the HSE and the Department of Public Expenditure and Reform as Cabinet prepares to publish the health service’s 2016 financial plan, which is expected to say the system is facing another deeply challenging year that could see it struggle to stay within budget.

The Irish Examiner understands that the €13bn HSE plan for the next 12 months, known as the service plan, will say alternative ways to balance the books may need to be considered because tough new EU rules banning supplementary budgets mean no other alternatives may be available.