Dáil Éireann Debate, Tuesday - 11 July 2017
136. Deputy Joan Burton asked the Minister for Finance the preparations his Department made in advance of the national economic dialogue regarding the fiscal space for USC and income tax reductions; and if he will make a statement on the matter. [32372/17]
View answerI take it the Deputy is referring to the National Economic Dialogue 2017 which took place in Dublin Castle last month. The Programme for Partnership Government contains a commitment that budget measures will involve at least a 2:1 split between public spending and tax reductions. This commitment is also contained in the confidence and supply agreement with Fianna Fáil.
The most recent published estimate of the net fiscal space available for 2018, as set out in Budget 2017 last October, is €1.2 billion. I have set out previously that the carryover-cost of measures introduced in Budget 2017 amounts to c.€700 million, leaving c.€500 million available for allocation in Budget 2018 for tax and expenditure measures. The next estimate of the fiscal space for 2018, will be set out in the Summer Economic Statement 2017, which is due to be published this week.
