Dáil Éireann Debate, Thursday - 4 October 2012
55. Deputy Brian Stanley asked the Minister for Finance if his attention has been drawn to the Autumn 2012 Quarterly Economic Observer report from the Nevin Economic Research Institute; if he has considered their alternative budgetary approach to that currently being implemented by him; and if so, if he will outline in broad terms his response to the proposals. [42270/12]
Amharc ar fhreagraI am aware of the report referred to by the Deputy. The Government is eager to hear reasonable proposals for budget measures from all interested parties and organisations. We will consider them fully and give them due consideration. Last year’s Medium-Term Fiscal Statement set out a multi-annual fiscal consolidation strategy agreed by Government for the period to 2015. It showed the levels of consolidation it is estimated are necessary to deliver annual General Government deficit targets. It also showed the proposed split between expenditure and revenue measures and within expenditure, between current and capital measures.
The Government is committed to meeting annual General Government deficit targets and to reducing the deficit below 3% of GDP by 2015. In that context it is clear that there remains a large deficit in our public finances that must be closed further in the coming years and this will require adjustments to both expenditure and revenue.
The objective of Government is to ensure that consolidation is implemented in a credible manner, while seeking to minimise the impact on the economy and the labour market. In line with the economic literature and the broad consensus amongst various economic agencies the Government believes the most effective and growth friendly way to implement such consolidation measures is by concentrating the majority of the adjustments on the expenditure side. Consequently, around two-thirds of the forthcoming adjustments are expected to be realised from expenditure. However, revenue raising measures have and will continue to be an important part of the overall adjustment process.
