Spending plan for 2000 to include boost for health

The Cabinet has agreed the Government's spending plans for 2000, with substantial increases expected for education and infrastructure…

The Cabinet has agreed the Government's spending plans for 2000, with substantial increases expected for education and infrastructure projects such as roads.

Health is also expected to receive a large increase in funding. The overall rise in day-to-day spending will be around the Government's 4 per cent target.

But this does not indicate clearly the trend in spending on day-to-day Government services, as it also includes debt service payments and is taken as an average over several years.

According to Mr Oliver Mangan, bond economist at AIB: "The bottom line is that gross current spending has been growing at 8 per cent a year for several years and is set to continue at that pace."

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The Department of Finance is preparing the details of the spending plans to be published in the Book of Estimates and the Public Capital Programme on November 11th before the Budget on December 1st.

These will outline Government plans for day-to-day spending in 2000. It does not include the Central Fund which is largely made up of debt interest payments and contributions to the EU budget.

The three big spending departments will again get most of the increases. The Department of Social, Community and Family Affairs will get the lowest percentage increase as its finances are benefiting from falling unemployment. Its overall allocation is expected to be around £3 billion (€3.8 billion).

Some additional health spending will go on nurses' pay, as well as a further attempt to reduce hospital waiting lists. Overall health spending will be around £3.3 billion, while education can expect around £2.6 billion.

A very large increase in capital spending is also in prospect with almost £3 billion allocated ahead of the publication of the National Development Plan.

The details of Government spending on social welfare will not be announced until Budget day, but an increase above the rate of consumer price inflation is likely to be delivered.

The overall package is expected to cost about £700 million next year, well ahead of last year's £581 million.