The Estimates at a glance

What are the Estimates?

What are the Estimates?

Every year around this time the Government sets out its spending plans for the coming year. They are called the Estimates and are divided into current spending and capital spending. The other half of the equation - where the money will come from - is outlined in the subsequent Budget which deals with revenue generation. The Estimates can be revised in the Budget and some spending plans such as social welfare increases are only revealed on Budget day. The Minister for Finance, Mr McCreevy, has indicated that he hopes to announce some increases in infrastructural spending.

Current Spending

Current spending accounts for more than €22 billion (£17.3 billion) of the more than €27 billion that the Government plans to spend next year. As the name suggests, it covers day-to-day spending by Government departments on wages and services. The wages bill for the State's 260,000 employees is expected to rise by 11 per cent next year and will eat up 1.2 billion of current expenditure. The remainder will go mostly on the cost of providing services such as health, education and social welfare.

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Capital Spending

Capital spending, as the name suggests, covers expenditure by the Government on capital items such as buses, trains, roads, sewage plants and houses. Next year the State plans to spend €4.98 billion (£3.92 billion) on such items, an increase of 5 per cent over last year. The national roads programme and public transport will get €1.27 billion and housing €840 million. This year's increase is modest compared to last year, when capital spending grew by €933 million, or well over 20 per cent.

Health

Spending on health will increase dramatically next year which is also an election year. The current spending estimate for the Department of Health is €6.1 billion (£4.8 billion), an increase of 13 per cent. The increase will cover many of the programmes to be announced under the Health Strategy to be unveiled next year. Some €170 million will go on hiring 2,500 new staff, including nurses. Capital spending will rise 29 per cent to €443 million.

Education

Education is the other area which the Government has made a priority. Spending in this sector will also increase by 13 per cent to €4.5 billion (£3.54 billion). Again there is more cash for new staff, but no capital allocation for new secondary or primary schools, although capital spending will rise 6 per cent to €540 million.

Social Welfare

The actual increases in social welfare and child benefit will not be announced until Budget day, but the Government has already approved an 8 per cent increase in the budget for Social Community and Family Affairs to €4.5 billion (£3.54 billion). This includes a provision for more people being on the dole next year.

Housing

Some €840 million (£661 million) has been set aside under the capital programme for housing, an increase of 8 per cent on last year. Day to day spending by the Department of the Environment will increase by 8 per cent overall, with a 7 per cent increase in local authority and social housing programmes to €956 million.

Infrastructure

Spending on roads and public transport will be up 8 per cent to €1.27 billion (£1 billion), but further increases may be announced on Budget day as the Government's ability to deliver on the National Development Plan is questioned. Some €366 million will be spent on capital projects by the Department of Public Enterprise and it will cover CI╔ and the Luas light rail project for Dublin.

Tribunals

The estimate for the Department of the Taoiseach includes a 83 per cent increase in the budget for the Moriarty tribunal from €3.5 million (£2.76 million) to €6.35 million. There is also an increase of 400 per cent in respect of its predecessor, the McCracken tribunal, to €1.27 million, indicating that it believes some new bills are on the way. The Flood tribunal has had its budget increased by 4 per cent to €5.9 million.

The Oireachtas

The wage bill for TDs, Senators and Members of the European Parliament will rise by 18 per cent to just under €17 million (£13.39 million), contributing to the 30 per cent increase in the Oireachtas budget to €76 million. An 11 per cent increase in members' travel expenses is also budgeted for along with a 29 per cent increase in TD's allowances and other expenses. Senators are making do with a 26 per cent increase.