Dáil Éireann Debate, Thursday - 19 July 2012
93 Deputy Michael McGrath asked the Minister for Finance his views on the overall composition of the fiscal adjustment in budget 2013, with a breakdown between capital and current spending and taxation measures, in view of the commitments in the memorandum of understanding with the EU-ECB-IMF; and if he will make a statement on the matter. [36171/12]
View answerThe overall level and composition between revenue and current and capital expenditure measures of the Budget 2013 fiscal adjustment was set out in last November's Medium-Term Fiscal Statement and again in April's Stability Programme Update (SPU). The EU/IMF Programme Memorandum of Understanding (MOU) also refers to a similar level of adjustment and similar split between revenue and current and capital expenditure measures as being necessary to reduce the General Government deficit to 7.5% of GDP next year, in line with our commitments. The MOU is an evolving document. Certain adjustments can be made to it following consultation with the Troika while at the same maintaining respect for the overall budgetary targets.
The Government will, over the coming months in the lead-up to Budget 2013, and on the basis of updated economic and budgetary data, finalise the precise details of the measures that will be implemented as part of Budget 2013. The Government will seek, insofar as it is possible, to implement the measures in a fair and equitable manner and in a way that will not unduly impact on the economy.
