DUBLIN, Ireland: Tánaiste Simon Harris has said that, according to the medium-term fiscal plan, government departments will have to adhere to the new spending ceilings.

He said the European Commission had approved the fiscal plan, which Ireland's budgetary watchdog had warned was submitted late.

He said the Government had been trying to balance many different demands. He added that, even though Ireland's economy was in good shape, the country needed to return to more normal, regular spending rules.

The Irish Fiscal Advisory Council said in November that the Government had not sent a medium-term financial plan to the European Commission and warned that it was "spending as if there is no tomorrow."

Simon Harris said there had been a lot of extra spending on buildings and infrastructure, but new spending limits for government departments would now be strict and could not be broken.

Speaking on RTÉ This Week, he said the Government now has a medium-term financial plan, which means he will not raise those spending limits any further.

He explained that while the Government has allowed spending to grow, departments must stay within their budgets. If they spend too much, it will cause problems for the next year because the limits are now fixed under the new plan.

He added that much of the extra money is being spent on important long-term projects, such as infrastructure, which the Finance Department views as an investment for the future because the state gains public assets. He also said the country is running budget surpluses and putting money into two long-term savings funds.

Harris, who is also the leader of Fine Gael, was asked about many topics in the interview, including housing, defence, football matches between Ireland and Israel, and the decision not to approve a critical care unit for the Rotunda Hospital.

He also said Ireland is behind other European countries in terms of interest-bearing savings. He called improving savings and investment a top priority during his time as finance minister. He admitted it is complicated because it involves taxes and rules about how much money people can save without paying tax.

He said that in the coming weeks, he plans to publish a roadmap and has studied systems used in Canada, Sweden, and the United Kingdom.