Minister for Finance Brian Cowen said yesterday that an additional €284 million will be spent on employing front-line public service staff such as doctors, gardaí, teachers and care workers.
During a press conference to announce a €4 billion increase in Government spending next year to bring it to almost €54 billion, Mr Cowen said there would be significant rises in the numbers employed in the health, education and justice sectors in an effort to improve public services further.
Describing the 2007 Estimates as "politically responsible", he said that capital spending will also rise by nearly €1 billion to €7.6 billion.
A large part of this rise is devoted to a 68 per cent rise in public transport spending to €780 million.
Mr Cowen said that of the €3.2 billion increase in current spending, €900 million arises from wage increases under social partnership agreements.
An additional €284 million will be set aside for the employment of additional staff, principally in the health, justice and education sectors.
The number of people employed in the health services will rise from 101,978 to 107,500, he said. In the education sector there will be an increase in staffing levels of 2,342 to 85,777, while trained and student Garda numbers will rise by more than 700.
He also said there would be an additional 1,800 staff employed in the care of children and the elderly.
Mr Cowen dismissed suggestions that in appointing the additional staff the Government was in breach of its targeted reduction of public service staff numbers by 5,000.
He said he was committed as part of Government policy to improvement in key public service areas such as health and education.
"You simply cannot do that without employing the people to provide those services," he said. "I can't see any other way of doing it. There are other areas where we can be more prudent."
He said that public service numbers had remained relatively static in other areas, such as local authorities, where there were fewer than 400 extra staff employed in the last four years.
Asked about next month's Budget, Mr Cowen gave the traditional response of "no comment" on his plans.
Launching the 2007 Estimates, Mr Cowen said the Government would "continue to take a responsible course by delivering policies that are sustainable and will benefit all the people".
"These Estimates are fiscally sustainable, economically appropriate and politically responsible."
Large-scale capital spending next year will include €1.5 billion on roads, €1.35 billion on social housing and €430 million on water services.
In current spending, Mr Cowen said he was setting aside €14 billion for the health services, a rise of 11.3 per cent.
This includes €330 million to cover the nursing home repayments scheme, and an extra €120 million for early childhood payments announced in the budget last year.
Education is to see a 7.7 per cent rise in current spending to almost €8 billion. A majority of the rise, €355 million, will go on pay, Mr Cowen said, adding that education was a "labour-intensive, front-line service and we cannot meet the needs of the sector without paying those providing the service".
Mr Cowen also outlined new measures aimed at improving value for money in public expenditure.
From next year Ministers will be required to provide the Oireachtas with "output reports" outlining the results of their departments' spending in terms of services, facilities and other elements.
Another initiative that will come into effect next year is the new guidelines for planning major capital projects, including a detailed "cost-benefit" analysis.