Pat Cox
Ceist:153 Mr. Cox asked the Minister for Finance the amount of extra net revenue that accrues to the State for each 1 per cent nominal growth in GDP and in GNP.
Written Answers. - Revenue Generated by GDP Growth.
Pat Cox
Ceist:154 Mr. Cox asked the Minister for Finance the amount of extra net revenue that accrues to the State for each 1 per cent real growth in GDP and in GNP.
I propose to take Questions Nos. 153 and 154 together.
Growth in either the volume or value of GNP can emerge from any of an infinite variety of combinations of changes in the volume of price of the various components of GNP. Tax revenue does not respond similarly to changes in the volume or price of each of the various components. The effects of any given quantum of growth in GNP on tax revenue will vary, therefore, depending on the source and application of that growth. Similar considerations obviously apply in relation to any given rate of GDP growth. It is impossible, accordingly, to provide a realistic answer to the question as framed by the Deputy.