The health services budget will be increased by almost 18 per cent next year, more than four times the initial 4 per cent cap for Government Departments set down by the Minister for Finance.
In the Estimates volume to be published later today, Mr McCreevy will allocate up to £14 billion (€17.8 billion) across all Departments, paving the way for the most politically difficult Budget of recent years.
The Department of Health has won its biggest allocation, - larger than any other Department. This year's increase of £590 million in current expenditure is a response to the chronic difficulties besetting the health services. From a base of £2.7 billion in 1997 the health budget has almost doubled, to £4.7 billion next year, an increase of 80 per cent since the Government took office three years ago. Over the past two years funding has been concentrated on infrastructure but that focus will shift now to allocating money to services that have been put in place. The Minister for Health, Mr Martin, had told The Irish Times that the funding increases of the last two years, 56 per cent, would be needed for the next few years. Much of the money he said was "just bringing things up to scratch after decades of underfunding and people must realise that healthcare costs money". Most increased allocations across all Departments will go on the wage bill with up to three-quarters of the almost £14 billion going to pay or social security payments.
The Department of Education's allocation does not include any money for additional pay rises because of the continuing secondary teachers or other disputes.
Additional funding will also go to roads, CIE, additional prison and asylum places as well as more Garda.
Government sources said yesterday that "all of the key parts of Government will be happy" with the increases.
Mr McCreevy tried to limit overall spending increases to around 4 per cent and with inflation soaring succeeded with many Departments despite an Exchequer surplus likely to exceed £2 billion at the end of the year.
Day-to-day spending is running 9 per cent ahead of last year, with overall spending up some 19 per cent.
The publication of the Estimates will be followed by this Saturday's all-day Cabinet meeting to discuss the Budget.
This is an unusual move, reflecting the political sensitivity of the package to be announced on December 6th.
The Budget is likely to see substantial spending on social welfare increases, the elderly and increasing child benefit payments as well as further income tax cuts.
The Department of Foreign Affairs has won a 25 per cent increase in overseas development aid to £260 million from £208 million, in line with the Government's recently announced aim to reach the UN target of 0.7 per cent of GNP by 2007.
The Department of Public Enterprise has won significant additional funding to make up for lost revenue and increased due to earlier industrial action.
Within the Department of Justice, money will be provided for refurbishing Dublin's Mountjoy Jail as well as the recruitment of 500 additional gardai. The Government has recruited 150 of the additional 370 staff agreed last June to deal with asylum applications, and the remaining 220 will be funded next year.
Capital spending will approach £3.5 billion as the Government funds major projects in the National Development Plan for the second year running.
