Dáil Éireann Debate, Tuesday - 27 September 2011
128 Deputy Michael McGrath asked the Minister for Finance if the Government is required under the EU-IMF programme of assistance to achieve a certain primary deficit level in 2012; and if he will make a statement on the matter. [26334/11]
View answerThere are quarterly Exchequer primary balance targets that we are required to meet under the terms of the EU-IMF Programme of Financial Support. These are set out in the Technical Memorandum of Understanding (TMU). As they are primary balance targets, they exclude Exchequer debt interest payments. They also allow for the exclusion of expenditure related to the banking sector recapitalisations and adjust for over/under-performance in Exchequer tax revenues and PRSI receipts, compared to the targets set out in the TMU. We have adhered to the first three of those targets which were set for end-December 2010, and end-March and end-June 2011. The next target set is for end-September 2011. The July 2011 TMU also set targets for end-December 2011 and initial targets for end-March and end-June 2012. The next revised TMU (October) will then set an initial target for end-September 2012 and so on.
It is also important to note that under the revised Excessive Deficit Procedure (EDP) Recommendation issued by the ECOFIN Council in December 2010, Ireland's General Government Deficit must not exceed 8.6% of GDP in 2012.
