Minister for Social Protection Joan Burton has said there should be no further cuts to the welfare or education budgets and argued that the Government's focus should be health service reforms.
Ms Burton’s intervention follows demands from the Department of Finance for a €2 billion retrenchment in the 2015 budget, something that could not be achieved without further cuts from the welfare and education budgets.
“As I say, we continue to get people back to work, and that has an enormous positive effect on the parameters of the budget and particularly on the total spend by social protection, which is falling.”
Her remarks can be seen as an implicit message to Fine Gael, as it holds the health portfolio while Labour holds social protection and education.
“My view – having looked at the economy and having looked at how things are going – I think that there will be no requirement for further social welfare cuts or indeed cuts in the Department of Education spending,” said Ms Burton.
Value for money
"I think the real imperative will be to actually get value for money and reforms in relation to the Department of Health."
Ms Burton's emphasis on the need for further measures to control health spending comes amid continuing concern over a major savings shortfall on the watch of Dr James Reilly.
While Ms Burton herself has faced demands in successive budget rounds for more welfare savings, the pick-up in job creation and reduction in unemployment payments has reduced pressure on her.
“I think every year starting around this time let’s say there are conversations in relation to what might happen in the next. The reality in terms of social protection is that we are making and continue to make very significant savings as a consequence of getting people back to work,” Ms Burton said.
Easing
"That means that there is a very significant easing in terms of the social welfare budget. Last year, €150 million of that easement was given to the Department of Health. This year so far it's €47 million."
She would not be drawn on the stance of the Department of Finance, which is resisting the clamour to cut the €2 billion target for the October budget. In a report on Friday, the IMF said Dublin should not waver from the €2 billion target. “The previously envisaged adjustment for 2015 remains appropriate,” it said.
“Budgetary measures of the order of 1¼ per cent of GDP in 2015, as targeted since 2011, would safeguard hard-won credibility.”
The ESRI has suggested the Coalition may need no more than €500 million in anticipated water charge revenues to meet its deficit target in 2015.
