Dáil Éireann Debate, Thursday - 4 October 2012
24. Deputy John Browne asked the Minister for Finance the process that he has undertaken to review and where appropriate take on board the recommendations of the Fiscal Council's report; and if he will make a statement on the matter. [42289/12]
View answerLast year, the Government established a Fiscal Advisory Council which is to report periodically on the fiscal position. In that context, I welcome the recent publication of the Council’s third Fiscal Assessment Report. My Department monitors all economic developments closely and considers the analysis and recommendations in expert reports such as those produced by the Fiscal Council. These will form valuable inputs to its updated economic projections, which will be published later this month in the Medium-Term Fiscal Statement (MTFS).
The Council suggests that it would be prudent to undertake additional consolidation in 2014 and 2015. It is of course extremely important that we adhere to the deficit targets which have been set and that we restore sustainability to the public finances as soon as possible. Developments this year have been broadly in line with expectations in aggregate terms. In this context, Government will take the views of the Council into consideration.
On the other hand, I am very conscious of the potential impact this could have on economic activity. In striving to restore sustainability to the public finances, we must also be mindful of protecting the emerging economic recovery and seek to strike the right balance between the two. This balancing act is difficult but it is my view that we have a reasonable balance. The fact that the Council sees us as achieving deficit targets on the basis of the already committed adjustments reinforces my view in that regard. However, we will continue to closely monitor economic developments and will take the measures necessary to meet our deficit targets.
