The Deputy should be aware that the correct comparator with the nominal Budget package of €1.3 billion is the €1.19 billion which was set out in the Summer Economic Statement. This was based on fiscal space of €1 billion, but the effect of capital smoothing meant that actual capital spend of €250m only absorbed €60 million in terms of available fiscal space. Budget 2017 introduced a package of €1.3 billion which uses fiscal space of €1.2 billion.
Based on the Commission's matrix specifying the required annual fiscal adjustment towards Medium Term Budgetary Objective (MTO), the required adjustment in our structural budget balance in 2017 was fixed at 0.6 percentage points. This requirement was set reflecting both our public debt sustainability and the cyclical position of Ireland's economy. The requirement was frozen based on Commission outlook for Ireland as of Spring 2016. The projected pace of structural correction of 0.8 percentage points in 2017 as set out in Budget 2017 exceeds this requirement.