THE Coalition fears a post-Budget backlash over an expected €1billion spending overrun at the Department of Health, senior Government sources said this weekend.
asserted
sources → fear → Health
It comes as Public Expenditure Minister Jack Chambers and Health Minister Jennifer Carroll MacNeill ‘closed off’ the Department of Health 2027 Budget to their satisfaction last night.
However, the solution is unlikely to be satisfactory to either the Opposition or many in the Coalition due to the €1billion ‘supplementary budget’ that will be needed to cover this year’s overruns at the Department of Health.
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that → come → Health
A Cabinet source told the Irish Mail on Sunday: ‘Minister Chambers and Minister Carroll MacNeill have agreed the budget for next year, but they also had to agree how to fill a €1billion hole in this year’s finances at Health.
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they → tell → Health
It’s the worst overrun for a decade and there has to be a political price paid here.’
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It → ’ → decade
Escalating cost overruns at the Health Service Executive (HSE) this year are causing increasing concern at the Department of Public Expenditure and Reform.
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overruns → escalate → Expenditure
Last night it was agreed Minister Carroll MacNeill could have her departmental budget stamped for 2027, but that a €1billion hole for this year would have to be filled with a ‘supplementary budget’.
uncertain
hole → agree → budget
This means that €1billion of taxpayers’ money will have to come from ‘off-balance sheet’ funds to bail out the health service.
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1billion → mean → service
Escalating cost overruns at the Health Service Executive (HSE) this year are causing increasing concern at the Department of Public Expenditure and Reform
A Cabinet minister said: ‘Minister Chambers and Minister Carroll MacNeill closed off Health this weekend, which is a big one, although across the Coalition we’re expecting a backlash as the solution will hardly go unnoticed by the Opposition, which will surely take issue with the fact the ‘solution’ will be to pump a further €1billion into the departmental budget by means of a “supplementary budget” at the end of the year.’
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solution → escalate → year
They said the ministers were working well together, adding: ‘But it’s hardly a poster girl performance for departments seeking to work within their budgets – it’s an awful look.
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it → say → budgets
It’s the largest overrun in a decade.’
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It → ’ → decade
A senior official at the Department of Finance added: ‘The HSE went on a hiring spree over the summer that they had no permission to do.
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they → add → permission
The new regionalisation of the HSE appears to be a complete f***ing mess.’
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regionalisation → appear → HSE
Last week, the MoS revealed how a blame game has erupted between the department and the HSE over runaway spending levels.
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game → reveal → levels
In response to queries from the MoS, the Department said HSE spending levels are ‘not sustainable’, adding that while there are genuine pressures on the health service, ‘these factors do not explain the full scale of the overspend.’
Last week, the MoS revealed how a blame game has erupted between the department and the HSE over runaway spending levels
Deteriorating relations were evident at last week’s Public Accounts Committee (PAC) hearing, which heard of the €1billion overspend.
One PAC member told the MoS: ‘Relations looked to be utterly icy.
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Relations → say → MoS
Normally bureaucrats hide their battles when they are in front of those politicians, but everything was on display last week.
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everything → hide → display
Another source noted: ‘It was very clear a significant power struggle is developing between the department and the HSE.
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struggle → note → department
‘The HSE is utterly isolated, to the point [Tánaiste and Finance Minister] Simon Harris is saying he is in lockstep with his friend Jennifer [Carroll MacNeill] and colleague Jack [Chambers] when it comes to imposing order
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it → isolate → order
‘Now, as the HSE are tottering into chaos, the department is striking back.’
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department → totter → chaos
The fallout comes as health advocate and owner of the Lifeline Ambulance Service, David Hall, warned ‘the State and the public are facing a winter of hell’ in our hospitals, telling the MoS: ‘The one thing that never changes is people most impacted by cuts in services are the old, the sick and the handicapped.’
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people → come → services
Everything you need to know about Budget 2027 IN ONE PLACE
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you → need → PLACE
By now, of course, all of the Budget kites have been well and truly flown and there are likely to be few surprises when Budget 2027 is unveiled on Tuesday.
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Budget → fly → Tuesday
But as Government leaders grapple with wild overspending and global conflicts still raging, there’s still plenty to play for as Budget discussions head for a fiscal penalty shoot-out.
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discussions → grapple → out
When it comes to what we’re getting and – more importantly – what we’re not getting, Budget ’27 is like former US defence secretary Donald Rumsfeld’s infamous quote about ‘known unknowns’.
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Budget → come → unknowns
There are several ‘known knowns’ we can be confident will sound familiar by the time Finance ministers Simon Harris and Jack Chambers deliver their Budget addresses.
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Harris → be → addresses
But there are also a few ‘known unknowns’, parts of the budgetary process – like the level of social welfare increases – that remain a relative mystery.
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that → be → increases
And then there are the ‘unknown unknowns’, factors outside the Government’s control that could ultimately unravel their best-laid fiscal plans.
uncertain
that → be → plans
KNOWN KNOWNS
Taoiseach’s deadline miss
Micheál Martin’s original October 2 deadline for Budget negotiations to end, conveniently, the night before the annual Cairde Fáil dinner, has certainly been missed.
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negotiations → end → dinner
One source close to
the budgetary process noted: ‘The Taoiseach is less than happy.
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Taoiseach → note → process
He didn’t want a repeat of last year’s debacle, the printers on hold past midnight.
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printers → want → midnight
Micheál wanted all this tied up in little bow by Friday.’
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this → want → Friday
They added: ‘It sort of captures his performance in the run-up to date – peripheral and not getting what he wants.’
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he → add → what
We expect there will be a €2,000 increase in the amount taxpayers earn before hitting the top tax rate.
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taxpayers → expect → rate
But if there’s an extra €500m in the kitty, will Simon go higher?
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Simon → ’ → kitty
Don’t be surprised if he does but, when tax credits are included.
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credits → do → ?
It’ll still settle around the €1.2bn figure.
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It → settle → figure
Excise and fuel… a billion here, a billion there
The ongoing retention of the excise cuts has been announced so often it’s now old news.
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it → announce → cuts
That won’t deter Simon and Jack from announcing it again on Tuesday.
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That → deter → Tuesday
All finance departments love a big-ticket initiative that doesn’t cost much.
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that → love → much
The only question is whether Simon Harris, below, will sweeten his much-discussed State-backed Savings and Investment Account (SIA) scheme with some tax benefit for those revered thrifty savers.
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Harris → sweeten → savers
If there is a present, though, it will be of the smaller €50m scale variety.
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it → be → variety
…and 23 more, not listed.
The Aporia
