Dáil Éireann debate -
Tuesday, 28 Apr 1998

Vol. 490 No. 2

Written Answers - Budgetary Strategy.

Michael Ferris

Question:

56 Mr. Ferris asked the Minister for Finance his position on the anticipated rise in the budget surplus which is expected to exceed initial projections by £500 million; the plans, if any, the Government has in relation to this surplus; and if he will make a statement on the matter. [9538/98]

Olivia Mitchell

Question:

61 Ms O. Mitchell asked the Minister for Finance if he expects the 1998 budgetary outturn to be in surplus; the estimated size of the surplus; and if he will make a statement on Government policy on surplus budgeting. [9601/98]

Minister for Finance (Mr. McCreevy)

I propose to take Questions Nos. 56 and 61 together.

On budget day I forecast an Exchequer borrowing requirement of £89 million or 0.2 per cent of GNP. The latest projections for my Department suggest that we are on course for a budget surplus of £400 million or 0.9 per cent of GNP. In general Government terms this amounts to 1.2 per cent of GDP.

Deputies may recall that in the recent budget I set out my budgetary strategy for the next three years. For the assistance of the House I would like to quote from this. I said that it was necesary "to take account of a number of strategic issues: provide for capital investment, reduce the tax burden, pursue social inclusion, prepare for EMU, anticipate changes in European Structural Funds, plan for an ageing population; reduce our national debt."

In relation to the national debt I went on to say:

As a country we are still deeply in debt. At the end of this year it is likely to exceed £30 billion or about £22,000 for every person at work. The interest cost alone will be over £2,300 million. We must free up these resources. Think of the alternative uses we could make of them: in increased investment, improved social services, or a reduced tax burden.

I do not propose to depart from this strategy.