Michael McGrath
Question:63. Deputy Michael McGrath asked the Minister for Finance the approximate additional tax revenue the State earns from each 1% rise in nominal GDP; and if he will make a statement on the matter. [36231/14]
View answerThursday, 25 September 2014
Questions (63)
Written answers
There is no simple answer with regard to the impact of different growth rates on tax revenue as the exact impact would depend on the composition of growth. For example, growth driven by exports does not have as significant an impact on the public finances as domestically driven growth. A general rule of thumb, assuming no change in tax policy, every increase of 1 percentage point of nominal GDP will result in about a 1 percentage point increase in tax revenue.
As the Deputy, will be aware, the next formal forecast will be the White Paper on Receipts and Expenditure which will be published in advance of the Budget and will set out the no-policy change position for 2015.