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Fiscal Policy

Dáil Éireann Debate, Tuesday - 14 December 2021

Tuesday, 14 December 2021

Questions (241)

John Lahart


241. Deputy John Lahart asked the Minister for Public Expenditure and Reform his plans to implement recommendations (details supplied); and if he will make a statement on the matter. [61901/21]

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Written answers (Question to Public)

The Summer Economic Statement (SES) set out the Government’s medium term fiscal strategy which anchors budgetary policy by keeping core expenditure growth in line with the trend growth rate of the economy.

The objective of this rule is to de-couple expenditure policy from cyclical variations in the economy and from windfall tax revenue. In its Fiscal Assessment Report, the Irish Fiscal Advisory Council welcomed this innovation to Ireland’s fiscal framework. I further note the Council’s view that the Government’s fiscal stance for next year strikes the appropriate balance between continuing to provide the necessary fiscal support to the economy while returning the public finances to a sustainable trajectory.

I note the Council's comments in relation to Departmental expenditure ceilings in respect of current expenditure not being published beyond 2022. In line with last year's Budget, technical current expenditure ceilings for 2023 and 2024 will be published before the end of the year, with the final ceilings for these years being fixed as part of the estimates process in the respective years, within the overall expenditure parameters set out in the SES and Expenditure Report 2022. This approach reflects the need to consider in Estimates settlements the unwinding of Covid-19 related expenditure and the allocation of funding from the Brexit Adjustment Reserve.

As usual with the Fiscal Assessment Report. The Minister for Finance will formally respond in the coming weeks.