Peadar Tóibín
Question:110. Deputy Peadar Tóibín asked the Minister for Finance if it has been brought to his attention that Ireland has one of the highest debt burdens per capita in the world. [9818/23]
View answerTuesday, 7 March 2023
Questions (110)
Written answers
I want to assure the Deputy that I am fully conscious that public debt in Ireland is amongst the highest in the world on a per capita basis.
Indeed, last month, my Department published its Annual Report on Public Debt in Ireland 2022, which highlighted that debt per capita amounted to €44,250 per capita last year. The analysis set out in this document also showed, however, that the burden of debt - as measured by interest payments as a share of total revenue - has fallen over the past decade, mainly due to the decline in interest rates.
This means that our debt burden is sustainable, but only as long as we manage it correctly. That is why sticking to a medium-term fiscal framework, with annual increases in public spending capped at 5 per cent per annum, is so important.
This is what Government intends to do.
I am also conscious that there are clear risks to our public finances - most notably in the form of a shock to corporation tax receipts. That is why I have transferred €4 billion to the National Reserve Fund last month and why I am targeting a budgetary surplus for this year.
I would also stress the importance of analysing public debt developments in a forward-looking manner: our population is ageing and this will involve large additional costs to the Exchequer. We will also need to finance climate change mitigation measures as well as the digital transition in the years to come.
With this in mind, my officials will shortly report on the merits of establishing some form of pre-funding vehicle. Such an approach would build fiscal buffers to meet long-term challenges, while also helping to ensure that permanent fiscal commitments are not made on the basis of receipts that are potentially transitory in nature.