Minister Brendan Howlin has told the Dáil the country's traditional system of budgeting no longer works and the old budgeting system that we have inherited is ''secretive and opaque''.
''It has not led to sustainable spending policies, to proper value for money or to good outcomes for our citizens,'' he added.
Minister Howlin said the Government is committed to bringing about a major transformation of the country's "old-fashioned" budget system. He said the Government will plan for sustainable public expenditure.
He said it will also introduce a ''modern, multi-annual expenditure framework'' which will open the way for ''proper structural planning, based on priorities and upon reform, with full public input and Dáil oversight''.
He said the Government would also introduce an evidence-based expenditure policy with a tough, clear new value for money code being launched today to redouble the processes for ongoing scrutiny and evaluation across the entire Irish public service.
He also said that departmental estimates will be presented in a new format so that performance information can by scrutinised by Dáil committees at the same time that public money is being requested.
The role of the Oireachtas will be also be enhanced and the reforms will hold the Government to account, he said.
''We are at the start of a reform process. Today and tomorrow are significant days in that process but our work in ongoing,'' the Minister stated.
''As a country we have already endured four years of hardship. Yet we remain an innovative and creative people. Faced with a more benign European economy and with clear and determined leadership this nation will prosper again,' he concluded.
