Update: Funding Infrastuctural Expenditure, 3rd July 2015

At a time when our economy is in recovery, investment for equitable and sustainable economic growth is vital. For this reason, the capital allocations published in Budget 2015 included increased investment for social housing in particular, reflecting the Government’s prioritisation of investment in this area.  They also provided for continued investment in Education, to meet demographic demands in our schools, and in Health to allow the HSE to progress a number of priority projects.

In relation to funding for Government expenditure, as the Deputy is aware, the National Treasury Management Agency (NTMA) issues Irish Government bonds which attract investment from institutions and individuals.  

Monies raised through Government borrowing are paid into the Central Fund and used to fund Government spending as approved by the Oireachtas and such spending  is on the Government’s balance sheet, regardless of where it is spent.  It has never been the custom to link borrowing to specific projects as to do so would limit the flexibility of the Government in managing the State’s finances.

The PPP programme provides a framework which allows the Government to supplement its traditional Exchequer capital programme by  procuring private sector investment and risk sharing in the provision of specific public infrastructure projects.    The use of private sector funding  in the creation of the assets combined with  the risk profile over the life of the  project  means that  the upfront costs of these projects are not included in the calculations of General Government spending.   Currently, there are 8 PPP projects   either in construction or in procurement with a combined value of approximately €1.4 billion.