Dáil Éireann Debate, Wednesday - 25 April 2012
49 Deputy Alex White asked the Minister for Finance if his attention has been drawn to a survey by the National Retail Industry Alliance which recommended rescheduling the budget to February; his views on this recommendation; and if he will make a statement on the matter. [20719/12]
Amharc ar fhreagraI have reviewed a submission from the National Retail Industry Alliance in relation to the rescheduling of the Budget that raise concerns about the impact of the current Budget timetable on consumer sentiment and Christmas trading volumes. While I have sympathy for their views, there are a number of contributing factors which act as a deterrent from attempting to alter the current Budget timetable.
Firstly, a draft EU regulation, which is part of the so-called "Two-Pack", envisages that all Member States will adopt their respective budgets by 31 December each year. This process would also require Member States to submit draft Budget Plans to the European Commission by 15 October each year to aid the consultation process. The current timetable fits with this draft requirement.
Secondly, in order to construct budgets that are underpinned by the best available data, it is necessary to wait until late in the year to finalise economic and fiscal forecasts. For example, most of our Corporation Tax receipts are received into the exchequer each year in November Each month of extra macroeconomic data also helps to improve the accuracy of forecast that underpins the annual budget.
In relation to the Retail Industry, the Programme for Government states that the standard rate of VAT will not exceed 23%. This commitment should ensure greater certainty surrounding consumption decisions and limit sentiment affects relating to Christmas trading volumes.
