A correction plan, within the meaning of Section 6 of the Fiscal Responsibility Act 2012, is only relevant in the event of a significant deviation from the medium-term budgetary objective, or where relevant the adjustment path towards it, and exceptional circumstances do not apply. This is not envisaged to occur at any point over the forecast period. If the State is required to prepare a correction plan in the future, such a plan would take into account the causes of the significant deviation.
Measures to achieve such a correction would not be introduced through secondary legislation under Section 9 of the Fiscal Responsibility Act 2012.
Any correction plan presented to the Dáil would be implemented primarily through budgetary legislation, which can be supplementary if the timing of the plan warrants it. There is provision to introduce a Finance Bill, Social Welfare Bill or expenditure estimates at any time. If the correction plan sets out a multi-year correction, then;
- Multi-annual revenue measures can be made through Finance or Social Welfare Bill amendments; and
- The element related to Government expenditure (about 90% of Ireland’s total general government expenditure) would be directly reflected in the Government expenditure ceiling which is being put on a statutory basis under the Minister and Secretaries (Amendment) Bill 2012.
Depending on the measures to be taken, other relevant legislation may need to be amended. If the correction plan includes other sub-sectors of general government such as Local Government then budgetary adjustments would be made in accordance with relevant legislation.
