Book of Estimates - No surprises but poverty still common

WITH the State coffers literally awash with money, it is unsurprising that Finance Minister Brian Cowen yesterday unveiled plans to splash out on frontline public services like health, crime, housing, education and transport in next month’s budget, the last before the 2007 general election.

In the fortunate position of having the kind of revenue that every finance ministers dreams of, the Book of Estimates reflects his awareness of the need to deliver greater resources to such key groups as nurses, teachers, gardaí, schoolchildren, and commuters.

A shrewd politician and widely favoured to succeed Bertie Ahern as Taoiseach, the minister has left little scope for opposition criticism. He knows taxpayers want better value for money and need to be convinced this Government is capable of funding the day-to-day cost of running the country in a responsible, sustainable and prudent manner.

They also need to be reassured that the appalling cost over-runs on major government projects are a thing of the past. That explains his constant mantra of prudence and moderation, backed by new checks and balances in a programme of budgetary reform.

Stressing there will be no cutbacks in public services next year, the minister announced that overall expenditure in 2007 will rise by 8% to €54.3 billion. Government spending on services will rise by over €4 billion, with over €3 billion going on day-to-day services and around €1 billion on capital services.

While most departments will get modest increases, the big winners are Health, Transport, Education, and Justice. There will, for instance, be 800 new teachers, extra grants for primary pupils, plus more money for new rail and bus services, extra gardaí on the beat, more spending on prisons, and greater investment in front line hospital services.

With the construction boom pivotal to the economy, there is unlikely to be any move on the controversial issue of stamp duty despite PD demands for action.

Voters will welcome the minister’s determination to stick to his guns by resisting the temptation to embark on the kind of vote buying pre-election splurge that we have seen from earlier Fianna Fáil governments.

While social welfare increases will be unveiled in the Budget, the minister must display greater awareness of the plight of tens of thousands of Irish people mired in poverty on the margins of society where many children go to school hungry every day.

With an election around the corner, Mr Cowen has begun the process of putting monetary flesh on the bones of widely publicised political promises.

Paving the way for a prudent budget rather than a spending spree in a bid to win the hearts and minds of voters, if the Government had its way there would be no bad news until after the election.