The launch:The Government's handling of the economy will remain "prudent" and designed to improve public services step-by-step, according to Minister for Finance Brian Cowen
Presenting the 2006 spending plans, he emphasised repeatedly that major Government initiatives, such as childcare, would not be announced until the budget on December 7th.
State spending will rise by 6.6 per cent on last year, rising by €3 billion to €48.5 billion - though this figure will jump further on budget day after social welfare and other increases are added.
Over €12 billion will be spent on health, up €750 million or 9 per cent, while education increases to €7.2 billion, up €530 million, and Social and Family Affairs will have €12.4 billion, before budget day increases.
"This Government's fiscal and economic policies have transformed the Irish economy. We will continue these policies," the Minister told a press conference in Government Buildings.
"Solid growth as a result of these policies will enable additional resources to be applied to enhance our public services that will improve the capacity of our economy and look after the needs of our more vulnerable citizens."
On childcare plans, Mr Cowen said he would announce a package on budget day, but warned "there is no magic wand that will sort this out". Repeatedly pressed, Mr Cowen said the Government wanted to ensure that parents working outside the home, and those who stay at home to look after their children would be treated equally.
The number of State staff now stands at 293,000 despite the 2002 cap imposed by Mr Cowen's predecessor, though no sum has been put aside in the Estimates for a new pay deal.
The State's wages bill will rise by 7 per cent next year, though the Programme for Sustaining Progress runs out mid-year. Increases from a programme still not negotiated would have to be paid from the autumn.
Mr Cowen said the State's progress had been "remarkable" over the last nine years, pointing out that the national debt would drop to 29 per cent at the end of this year, while the numbers working stand at nearly two million. The economy will grow by 4½ to 5 per cent which, though lower than levels of recent years, is "very strong by international standards".Health spending outlined in the Estimates does not include €400 million that will have to be spent next year on refunds to those illegally charged nursing home bills.
Asked to estimate the final bill of that affair, the Minister said: "I don't know the honest answer. The Tánaiste pencilled in an indicative figure of €400 million for next year. Whatever needs to be paid will have to be paid."
Overseas development aid will rise to €675 million next year in line with the Government's amended promise to reach the 0.7 per cent of gross national product target by 2012.
"This is a first step towards meeting the Government's interim target of 0.5 per cent of GNP in 2007," said Mr Cowen, adding that next year's overseas development aid allocation would exceed the EU average and be nearly three times the US figure.
Promising major announcements on budget day on capital spending, the Minister acknowledged that departments had failed to spend €258 million allocated to them for roads this year.
Defending the failure to spend all the money, the Minister said departments in the past would have had to hand it back, but may now hold on to it and spend it properly next year.
Nearly €3.3 billion will be spent on the disabled, up €300 million or 10 per cent, including €135 million under the multi-annual special disability package in the last budget.
Warning that there is "no room for complacency", the Minister said some "risks and challenges" would have to be faced, including higher oil prices, interest rates, and increased international competition for markets and for investment.
