Dáil Éireann Debate, Wednesday - 23 May 2012
56 Deputy John Halligan asked the Minister for Finance the impact that the recent downgrading of growth projections for the Irish and European economies are likely to have in terms of the fiscal adjustments required to meet Ireland’s deficit targets for the years 2013, 2014 and 2015; and if he will make a statement on the matter. [25659/12]
Amharc ar fhreagra58 Deputy Joan Collins asked the Minister for Finance the impact that the recent downgrading of growth projections for the Irish and European economies are likely to have in terms of the fiscal adjustments required to meet Ireland’s deficit targets for the years 2013, 2014 and 2015; and if he will make a statement on the matter. [25661/12]
Amharc ar fhreagra61 Deputy Richard Boyd Barrett asked the Minister for Finance the impact that the recent downgrading of growth projections for the Irish and European economies are likely to have in terms of the fiscal adjustments required to meet Ireland’s deficit targets for the years 2013, 2014 and 2015; and if he will make a statement on the matter. [25655/12]
Amharc ar fhreagra89 Deputy Bernard J. Durkan asked the Minister for Finance if he continues to be satisfied that the targets identified in the contexts of Budget 2012 can be reached notwithstanding less than anticipated economic growth rates; and if he will make a statement on the matter. [25942/12]
Amharc ar fhreagraI propose to take Questions Nos. 56, 58, 61 and 89 together.
Projected economic growth rates for Ireland were revised downwards in the recent Stability Programme Update (SPU) predominantly with regard to this year but also marginally in respect of next year. Other Member States have also been subject to downward revisions to their forecast growth rates in the recent EU Commission's Spring forecasts and this has been accounted for in the assumptions underpinning Ireland's recent SPU.
The end-April Exchequer Returns illustrate that tax revenues were €370 million (3.5%) ahead of profile with income tax, VAT and Corporation tax all performing solidly. This demonstrates the robustness of the Budget day forecasts and gives me confidence that we are on course to meet our targets. We must bear in mind, however, that we have only four months Exchequer data to hand and there are large tax revenue targets to meet over the course of the year, including for May.
While total net-voted expenditure was 2% ahead of target in the first four months of the year with spending pressures evident in the areas of Health and Social Protection, my colleague, the Minister for Public Expenditure and Reform impressed upon all his Cabinet colleagues the importance of actively managing spending within agreed limits. This is essential if budgetary targets, both on an Exchequer and General Government basis, are to be achieved.
Overall at this point, I am confident that our fiscal targets can continue to be met. The projections set out in the SPU, which are consistent with the consolidation amounts set out in the Medium-Term Fiscal Statement and Budget 2012, envisage that all fiscal targets will be met over the forecast horizon.
However, I must stress that the perennial risks associated with economic and budgetary forecasting apply and particularly so in such uncertain economic and financial circumstances. As ever, my Department will maintain a close eye on emerging economic and budgetary developments as the year progresses and will keep me informed in that regard.
