Thomas P. Broughan
Question:154. Deputy Thomas P. Broughan asked the Minister for Finance the other sources of funding that may be drawn upon for Budget 2014; and if he will make a statement on the matter. [1450/13]
View answerWednesday, 16 January 2013
Questions (154, 160)
Thomas P. Broughan
Question:160. Deputy Thomas P. Broughan asked the Minister for Finance the estimated deficit reduction target in 2014; and if he will make a statement on the matter. [1456/13]
View answerWritten answers
I propose to take Questions Nos. 154 and 160 together.
Targets for the underlying General Government balance (GGB) expressed as a percentage of Gross Domestic Product(GDP), covering the period 2012 to 2015, are set in table 9 on page C.18 of the Budget 2013 booklet.
Under the Stability and Growth Pact, the general government deficit should not exceed 3% of GDP. As our current GGB is in excess of this, an Excessive Deficit Procedure applies. Under this Procedure, we have a target GGB of -2.9% of GDP in 2015.
For 2013, the target GGB is -7.5% of GDP and for 2014 the target is -5.1% of GGB. The Government remains committed to meeting these targets.
Regarding sources of funding for Budget 2014, Table 12 on page C.21 of the Budget 2013 booklet sets out the projected revenue for the period 2013 to 2015. This table shows a projected General Government Deficit of €8.9 billion for 2014. This deficit will be funded by the activities of the National Treasury Management Agency (NTMA).
As per NTMA’s press release on the 9th of January 2013, the NTMA intends to step up its re-engagement process with the market during 2013 so that Ireland is positioned to successfully exit the EU/IMF programme, having already eliminated the funding cliff presented by a €11.9 billion bond repayment due in mid January 2014.