Cowen unveils revamp of budgetary timetable

Minister for Finance Brian Cowen has announced a revamp of the Government's budgetary timetable that will see all spending measures and tax changes announced on one budget day.

Mr Cowen said "streamlining" the budgetary arrangements was necessary to allow the Government to manage the public finances in a more transparent manner.

Up to now, changes in public expenditure have been announced by the Department of Finance on three occasions - the publication of the Abridged Estimates Volume in November; budget day in December; and the publication of the Revised Estimates Volume in the following February.

This will now be changed into one announcement of all expenditure developments and tax measures on budget day.

Under the new arrangements, Mr Cowen explained, the Government will publish pre-budget estimates of the resources required to maintain the existing level of public services for the following year in October.

"This initiative will make it clear to Dáil Éireann and to the public at large what is the pre-budget position and what is the additional spending being proposed," he said.

He said all policy initiatives involving an increase in public expenditure, above and beyond the existing level of service figures, would now be dealt with on budget day, along with the social welfare increases and tax measures.

The changes were prompted by call from the Dáil's Public Accounts Committee for a clear distinction between the pre-budget and post-budget allocations, Mr Cowen said.

"Spending and revenue decisions will be made clearer and handled within the framework of the Government's overall budgetary and economic parameters," he said. "In this way, we will ensure that Ireland maintains a sound and sensible fiscal policy, fully in line with the provisions of the EU's Stability and Growth Pact."

Mr Cowen also claimed the new approach would deliver better value for money for the taxpayer.

He was speaking at the opening of the new offices of the Economic and Social Research Institute in Dublin today.