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Irish Fiscal Advisory Council Reports

Dáil Éireann Debate, Thursday - 14 February 2019

Thursday, 14 February 2019

Questions (23)

Thomas P. Broughan

Question:

23. Deputy Thomas P. Broughan asked the Minister for Finance the response issued to the November 2018 fiscal assessment report by the Irish Fiscal Advisory Council; if he and his officials have met the council to discuss its critique of his fiscal stance; and if he will make a statement on the matter. [7153/19]

View answer

Written answers

I can confirm for the Deputy that my formal response to the November 2018 Fiscal Assessment Report (FAR) issued to the Irish Fiscal Advisory Council on 23rd January 2019. In keeping with established practice, a copy of the response was also published on my Department’s website. Given its independent nature, I do not as a matter of course hold formal meetings with the Council. However, in terms of parliamentary scrutiny of the Budget, last month I attended a meeting of the Oireachtas Budget Oversight Committee to discuss the Council’s November FAR. This allowed for a positive exchange with Committee members around some of the main issues arising from Budget 2019, as well as the assessment report.

In terms of the Council’s assessment of the fiscal stance, I note that the Council assessed the Irish economy to be operating at close to potential and that the outlook remains broadly positive. This is an assessment that is broadly similar to that of my own Department. I undoubtedly share the Council’s views on the risks facing the economy and the current uncertainties arising from the external environment has been a significant part of my decision to target a balanced budget this year. Indeed, it is important to stress that a surplus of about ½ per cent of GDP would have been in prospect had the Government not decided to increase capital expenditure by almost a quarter this year, which in turn will boost the productive capacity and further enhance the resilience of the economy.

Finally, it is also worth noting that the European Commission which has responsibility for assessing our compliance with the fiscal rules, assessed Budget 2019 as being compliant with the fiscal rules. This is a positive endorsement of the Government’s budgetary policy and the underlying fiscal stance we have adopted as part of Budget 2019.

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