Public spending may be constrained for some time - O'Dowd

The Finance Minister has said that transformation must be an essential part of the Budget with public spending likely to be "constrained for some time".

John O'Dowd MLA was speaking as the Executive agreed a budget reallocation exercise known as a monitoring round.

The minister said that funding bids significantly exceeded funding available.

He said they are 12 times over in terms of day to day spending and eight times over in respect of money for capital projects.

He said: "The Executive has had to make difficult decisions to ensure that the most urgent and high-priority needs are met within the constrained funding envelope."

This is the first multi-year budget in a decade.

The minister said: "With public expenditure likely to be constrained for some time, transformation must be an essential part of this Budget if the Executive is to deliver its ambitions within the funding available."

"We have a growing disconnect between the costs of delivering services and the resource available," he added.

When asked by the SDLP's Matthew O'Toole, what last week's planning decision will mean for funding earmarked for the A5, the Minister said it was "too early to say".

Monitoring rounds provide a system to review spending plans and are usually held three times a year - in January, June and October.

About one third of the £78.5m in day-to-day spending available, £25m, has been allocated to the Department of Health to address a range of pressures.

The Department of Education will receive £12.3m for Special Education Needs and £8.1m for a range of pressures faced by the Education Authority in delivery of its statutory responsibilities.

"I am proposing that Department of Justice will be given first call of up to £7 million on funding in future monitoring rounds this year towards PSNI workforce recovery costs, recognising the importance of investing in our police workforce," O'Dowd said.

"I look forward to working with the Justice Minister and the Executive to progress the delivery of the PSNI Workforce Recovery Plan as part of the multi-year Budget process," he added.

The Department of Justice will also receive £5 million to cover unforeseen costs facing the PSNI in dealing with the recent public disorder.

In terms of capital spending for things like roads and infrastructure, £40.1 million was available.

About £11.3m has been allocated to the Department of Education towards a range of capital works.

£11.3m has also been allocated to the Department for Infrastructure for pressures relating to the water network.

The Department for Communities will receive £9m towards social housing.