Tuesday, 2 July 2013

Questions (129)

Mick Wallace

Question:

129. Deputy Mick Wallace asked the Minister for Finance his views on recent research by the Nevin Economic Research Institute which states that a combination of a stimulus programme, tax adjustments and savings from the recently restructured deal on promissory notes, rather than extensive public expenditure cuts could be used to reduce the State's deficit to 3% of GDP by 2015; and if he will make a statement on the matter. [31892/13]

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Written answers (Question to Finance)

The Government is eager to hear reasonable proposals for budget measures from all interested parties and organisations. We will consider them fully and give them due consideration. The April Stability Programme update set out the consolidation path for 2014 and 2015 (Table 2 page 6), consistent with Budget 2013, showing the composition of revenue and expenditure measures. The general government balance (Table 8 page 22) was forecast using the technical assumption that the benefits of the promissory note restructuring would be used for deficit reduction.

The exact quantum and composition of adjustment in 2014 will be considered in the context of Budget 2014 discussions later this year. As has been discussed previously, the additional fiscal space by the promissory note restructuring will be central to these discussions with consideration to the latest economic and fiscal information.