Dáil Éireann Debate, Wednesday - 18 April 2012
90 Deputy Eoghan Murphy asked the Minister for Finance if he is considering any changes to the budget process, either in terms of announcing all major budgetary changes for the following year well in advance of December, or in rescheduling the budget itself to February, or later, as is the practice in the United Kingdom. [19583/12]
View answer167 Deputy Thomas P. Broughan asked the Minister for Finance if he has reviewed the submission from the National Retail Industry Alliance in relation to the rescheduling of the Budget in view of what the retailers argue is the severely negative impact of the current budget timetable on consumer sentiment and Christmas trading volumes; and if he will make a statement on the matter. [18569/12]
View answer191 Deputy Patrick O’Donovan asked the Minister for Finance if he has considered reviewing the budget schedule in response to representations on behalf of the retail sector; and if he will make a statement on the matter. [18932/12]
View answer238 Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence regarding the retail sector (details supplied); and if he will make a statement on the matter. [19425/12]
View answerI propose to take Questions Nos. 90, 167, 191 and 238 together.
I have reviewed a submission from the National Retail Industry Alliance in relation to the rescheduling of the Budget that raise concerns about the impact of the current Budget timetable on consumer sentiment and Christmas trading volumes.
While I have sympathy for their views, there are a couple of contributing factors which act as a deterrent from attempting to alter the current Budget timetable.
Firstly, a draft EU regulation, which is part of the so-called "Two-Pack", envisages that all Member States will adopt their respective budgets by 31 December each year. This process would also require Member States to submit draft Budget Plans to the European Commission by 15 October each year to aid the consultation process. The current timetable fits with this draft requirement.
Secondly, in order to construct budgets that are underpinned by the best available data, it is necessary to wait until late in the year to finalise economic and fiscal forecasts. For example, most of our Corporation Tax receipts are received into the exchequer each year in November. Each month of extra macroeconomic data also helps to improve the accuracy of forecast that underpins the annual budget.
In relation to the Retail Industry, the Programme for Government states that the standard rate of VAT will not exceed 23%. This commitment should ensure greater certainty surrounding consumption decisions and limit sentiment affects relating to Christmas trading volumes.
