Dáil Éireann Debate, Tuesday - 14 May 2013
188. Deputy Pearse Doherty asked the Minister for Finance the minimum adjustment that would be required to be made in budget 2014 to meet the original agreed deficit target as set out in the troika programme. [22364/13]
View answerUnder the Excessive Deficit Procedure a maximum General Government deficit of 5.1% of GDP is allowed for 2014. The consolidation path as set out in the Medium Term Fiscal Statement, published in November 2012, contained an adjustment of €3.1 billion to be implemented in 2014 which is consistent with achieving the target. However, as the Deputy is aware, there have been a number of developments in the intervening period, the most significant of which relates to the promissory note restructuring. It is estimated that this restructuring lessens the amount that will have to be borrowed in 2014 by approximately €1bn.
Following on from these developments and based on the purely technical assumption that the benefits of the promissory note deal will be used for deficit reduction purposes next year, our Stability Programme Update (SPU), published in April, forecast a General Government Deficit of 4.3% of GDP for 2014.
Budget 2014 will be announced on the 15th of October 2013 and in the preceding weeks and months, as further information is available, Government policy on Budget 2014 measures will be finalised. I will not be drawn into speculation at this time, on the composition of the next budget.
Any consolidation measures announced in Budget 2014 will continue to be implemented in as fair and equitable way as possible while fostering economic growth.
