Budget 2019

Dáil Éireann Debate, Thursday - 18 October 2018

Thursday, 18 October 2018

Questions (104, 111, 113, 114, 115)

Barry Cowen

Question:

104. Deputy Barry Cowen asked the Minister for Finance the non-voted current expenditure for the years from 2018 to 2023, by Department; the cost items that make up the non-voted expenditure for each Department; if he will provide similar information for non-voted capital expenditure, in tabular form; and if he will make a statement on the matter. [43069/18]

Michael McGrath

Question:

111. Deputy Michael McGrath asked the Minister for Finance the expected Exchequer borrowing requirement for each of the years from 2019 to 2023 based on the forecasts published in budget 2019; and if he will make a statement on the matter. [43075/18]

Michael McGrath

Question:

113. Deputy Michael McGrath asked the Minister for Finance the non-tax revenue for each year from 2018 to 2023 as outlined in tables 8 and 10 of the economic and fiscal outlook segment of the budget 2019 documents, in tabular form; and if he will make a statement on the matter. [43077/18]

Michael McGrath

Question:

114. Deputy Michael McGrath asked the Minister for Finance the capital receipts for each year from 2018 to 2023 as outlined in tables 8 and 10 of the economic and fiscal outlook segment of the budget 2019 documents, in tabular form; and if he will make a statement on the matter. [43078/18]

Michael McGrath

Question:

115. Deputy Michael McGrath asked the Minister for Finance the capital resources for each year from 2018 to 2023 as outlined in tables 8 and 10 of the economic and fiscal outlook segment of the budget 2019 documents, in tabular form; and if he will make a statement on the matter. [43079/18]

Written answers

Minister for Finance

I propose to take Questions Nos. 104, 111 and 113 to 115, inclusive, together.

Table 8 found on page 17 of the Economic & Fiscal outlook of Budget 2019 sets out the fiscal forecast for 2018-2023. It is presented in the same format as the Exchequer Statement included in the monthly Fiscal Monitor published by my Department. This facilitates a comparison of the end-year outturns against the Budget 2019 forecast.

Table 10 found on page 20 of the Economic & Fiscal outlook of Budget 2019 presents the fiscal forecast in the same format as the Analytical Exchequer Statement which is also included in the monthly Fiscal Monitor. As some of the Exchequer receipts and expenditure items do not have an impact in general government terms, under ESA 2010 statistical rules, these items are delineated in Table 10.

The line items which make up non-voted expenditure, both current and capital, are listed in Table 10 and are reproduced for the Deputy’s convenience in the following table.

-	2018	2019	2020	2021	2022	2023
non-voted current expenditure	8,925	8,430	8,475	8,025	8,405	8,815
- national debt interest	5,815	5,320	5,090	4,430	4,685	4,945
- debt management expenses	185	200	170	165	160	160
- EU budget contribution	2,575	2,575	2,875	3,050	3,200	3,350
- Oireachtas	135	150	140	140	140	140
- other	215	185	200	245	225	220
expenditure transactions with no general government impact
non-voted current expenditure	10	5	5	5	5	5
- Other	10	5	5	5	5	5
non-voted capital expenditure	1,050	1,130	1,145	1,125	1,155	1,190
- FEOGA	800	800	800	800	800	800
- Loans	240	310	335	315	345	385
- Other	10	20	15	10	5	5

The elements of non-voted current expenditure indicated in table 10 as impacting in general government terms, show the mains items as debt servicing costs, Ireland’s contribution to the European Union budget and the Oireachtas. Included in ‘other’ are such items as judicial salaries, allowances and pensions payable to the political system. In terms of non-voted current expenditure which does not impact on the general government balance, the main items are pension payments under section 48 of the Pensions Act 1990.

Non-voted capital for the years 2018 to 2023 is not expected to include items that will impact on the general government balance. The main items under this heading are short term cash flow loans to the FEOGA fund and other technical Exchequer loans. The line entitled “other” is mainly made up of investments in international bodies provided for under such legislation as the Development Banks Act 2005.

The Exchequer Borrowing Requirement (EBR) for 2019-2023 is represented in table 8 of the Economic & Fiscal Outlook of Budget 2019 as the Exchequer Balance and is reproduced for the Deputy’s convenience in the following table:

	2019	2020	2021	2022	2023
Exchequer Balance/Borrowing Requirement	-2,250	-670	810	-275	705

The line items which make up non-tax revenue are also listed in Table 10 and reproduced for the Deputy’s convenience in the following table.

	2018	2019	2020	2021	2022	2023
general government impacting non-tax revenue	1,405	1,315	845	635	600	520
- Central bank surplus income	670	565	315	135	80	-40
- Dividends	280	285	290	255	275	310
- other	455	460	240	245	245	245
non-general government impacting non-tax revenue	1,430	1,240	590	645	665	700
- Central bank surplus income	1,430	1240	590	645	665	700

As laid out in Table 10 the only non-tax revenue elements that impact upon general government are surplus income from the Central Bank arising from its normal operation, dividends paid to the State and ‘other’. Included in this ‘other’ category is interest on loans, royalties, departmental non-tax receipts and miscellaneous receipts. The only element of non-tax revenue which does not impact upon the general government balance is Central Bank surplus income related to the disposal of floating rate notes.

Capital receipts are laid out in Table 8 and reproduced for the Deputy’s convenience in the following table.

	2018	2019	2020	2021	2022	2023
capital receipts	20	20	20	20	20	20

Capital receipts are not received to the Exchequer, rather they are received directly into Departments or into extra budgetary funds as Appropriations in Aid.

The line items that make up capital resources are listed in table 10 and reproduced for the Deputy’s convenience in the following table.

	2018	2019	2020	2021	2022	2023
general government impacting capital resources
capital resources	145	75	65	70	70	75
non-general government impacting capital resources	1,710	1,055	2,850	3,070	1,070	1,070
- Nama	0	0	1,500	2,000	0	0
- FEOGA	740	800	800	800	800	800
- Loan repayments	970	245	550	270	270	270
- Other	0	10	0	0	0	0

The element of capital resources shown in table 10 as impacting in general government terms is mainly made up of forecast receipts from the European Union Regional Development Fund. In terms of capital resources that do not impact upon the general government balance, the main items include projected receipts of €3.5 billion arising from the projected wind-down of the National Asset Management Agency, repayment of an annual cash flow loan to the FEOGA fund and repayment of other technical Exchequer loans. These are generally given for cash flow purposes to ensure that sufficient resources are available when expenditure items fall due for payment.