Robinson reports on Executive's spending

Speaking on behalf of the Executive, Finance Minister, Rt Hon Peter Robinson MP, MLA today updated the Assembly on the progress of public spending in 2007-08.

Mr Robinson’s statement followed the conclusion of the October Monitoring, a process which helps the Executive make the most of the resources at its disposal.

A key element of the monitoring process is the identification, by departments, of resources allocated in previous budgets which will not be spent in this financial year. The normal approach in the monitoring process is to reallocate such sums to pressure points identified by departments.

Referring to his previous statement on the June Monitoring round and reminding the Assembly of the position inherited from the Direct Rule administration, Mr Robinson said:

“The key issue here is that the Direct Rule team adopted an aggressive approach of over-committing budgets. This meant that allocations within a budget process were somewhat higher than would otherwise have been the case, resulting in a significant reduction in the level of in-year flexibility.

“The consequence of this was that in the June Monitoring round the Executive was unable to make any additional allocations to departments, notwithstanding the fact that around £11 million of reduced requirements had been identified.”

Mr Robinson highlighted that budgets are agreed well before the actual spending and that a range of forecasts and assumptions are used. In addition, he reminded colleagues that unforeseen issues arise, for example the recent flooding incidents which could not in any circumstances have been anticipated by those setting budgets for this financial year.

While acknowledging these constraints, but underlining the cooperation of Ministerial colleagues, Mr Robinson added: “As a consequence of the steps we took in the June Monitoring round, and our ongoing work with departments, I am happy to report that the Executive is in a position to make some reallocations to departments at this time.”

In general, reduced requirements declared by departments in this monitoring round amount to £60.2 million in respect of current expenditure and £42.6 million in respect of capital investment. This is in keeping with expected levels at this stage of the year and goes some way towards reversing the relatively low levels declared by departments in June.

There will be a further opportunity to review the in-year position in December, which may provide further scope to consider any remaining pressures still faced by departments.

In concluding his statement by underlining the need to manage the over-commitment position, the Finance Minister said: “This necessary and fundamental requirement of the in-year monitoring process will allow us to make the best use of the resources at our disposal and maximise the level of spend on public services in a time of constrained public expenditure.

“Looking to the future, I would highlight the position as set out in my recent Draft Budget statement, where I have initiated a phased reduction of the over-commitment position across the next three years. I am confident that this position, aligned with our ongoing work in terms of improving the level and quality of financial management across all departments, will pay dividends in terms of better financial performance at all levels within departments.”

Notes to Editors:

1. The full text of the Minister’s statement and the accompanying departmental tables, can be accessed via the Department of Finance & Personnel website .
2. Media enquiries only to DFP Press Office on 028 9052 7375 or 028 9052 7644. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.