Wilson provides clarification on DSD budget allocations

Finance Minister Sammy Wilson has responded to today’s press release from the Department for Social Development regarding its budget.

The Minister said: I must state categorically that the Minister for Social Development’s capital budget did not suffer any cuts as a result of the June Monitoring round.

The £110million for the Royal Exchange project was surrendered by his department in accordance with public expenditure rules which states that funding not required for the purpose originally granted must be returned to the Executive for consideration and redeployment.

There was never any agreement that this money, or a proportion of it, would be returned to DSD.  The reallocation of reduced requirements is a matter for the Executive to decide and this is reflected in the outcome of the June monitoring round.

It must also be remembered that the June Monitoring round was held in the context of a £127.8million reduction in funding,  as a consequence of the £6billion reduction in UK public spending announced on 24 May (as well as significant pressures being identified by other departments).  It is from this perspective that the additional allocation of £10million capital to DSD should be viewed.

During these difficult financial times it is pertinent that Ministers manage their spending allocations effectively and do not contractually commit to spending without sufficient funds.”

Notes to ediotrs:

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