Dáil Éireann Debate, Tuesday - 5 November 2013
205. Deputy Thomas P. Broughan asked the Minister for Finance if he will report on whether savings will be made on servicing the national debt next year; and his views on the statement of the Economic Social and Research Institute that the cost of servicing the national debt next year could be as low as €7.7 billion. [46621/13]
View answerAs I outlined in my Budget Day speech, in order to achieve a General Government deficit of 4.8% of GDP in 2014, a total adjustment package of the order of €3.1 billion is required. This adjustment package comprises €2.5 billion in expenditure cuts and revenue increases, complemented by additional resources/other savings of some €0.6 billion. As part of the additional resources/savings identified, the Budget 2014 debt service estimate for 2014 is some €0.2 billion lower than the corresponding April 2013 Stability Programme Update estimate. This reduction is largely due to lower than previously planned Government bond issuance and an improvement in the interest rate outlook generally for 2014. This brings the estimate for interest on the National Debt in 2014 down to €8.15 billion.
The NTMA’s primary debt management objectives are to ensure adequate liquidity for the Exchequer and to keep debt service costs to a minimum over the medium-term, subject to an acceptable level of risk. I am satisfied that the Budget 2014 estimate for National Debt interest is a robust estimate, based on reasonable assumptions and one which reflects the primary debt management objectives of the NTMA referred to above.
