Skip to main content
Normal View

Budget 2013

Dáil Éireann Debate, Thursday - 15 November 2012

Thursday, 15 November 2012

Questions (54)

Pearse Doherty

Question:

54. Deputy Pearse Doherty asked the Minister for Finance if he will provide an estimate of the impact of the planned fiscal adjustment to be contained in budget 2013 on GDP employment and Government revenue projections for 2013; if any assessments of the impact of the adjustment on these matters has been undertaken or is due to be undertaken by his Department; and if he will make a statement on the matter. [50236/12]

View answer

Written answers

Each year as part of the budget, a table is published showing the impact of the planned budgetary adjustment on the fiscal position. In Budget 2012, this analysis was presented in Table 5. It compares the post budget position, following the implementation of the consolidation measures, with the pre budget (or white paper) position which is published the weekend prior to the budget.

The white paper for 2013 will be published the weekend before the budget and a table showing the impact of the budget on the fiscal position in 2013 will be published as part of the budget documentation on the 5th of December.

It should be acknowledged that while restoring the public finances to a sound footing is crucial for Ireland’s future, consolidation can have a negative short-run impact on the economy. However, I want to assure the Deputy that the Government is conscious of the need to minimise the impact of consolidation on the labour market and in this regard is framing Budget 2013 in such a way as to make it as job-friendly as possible.

The short term impact on GDP as a result of the fiscal adjustment in 2013 was factored into my Department’s forecasts released last December at Budget time, and no substantial change to estimates of this specific impacts were made in the MTFS forecast of 14 November. The downward revision to real GDP growth for 2013 to 1.5 per cent contained in the MTFS is a primarily a result of a realisation of downside risks highlighted at the time of SPU in relation to weaker international growth, and its pass-through to domestic demand.

Top
Share