As indicated in the Budget 2019 Tax Policy Changes the increase from 0.9 per cent to 1.0 per cent in the National Training Fund levy is expected to yield an additional €74m in 2020. The increase in the levy, therefore increases fiscal space as a discretionary revenue raising measure.
Fiscal space represents the additional capacity arising from the permitted expenditure growth rate that is available for expenditure increases and/or tax reductions. Fiscal space may be increased through the introduction of discretionary revenue measures that increase revenue and conversely it is reduced by discretionary revenue measures that lower revenue.
The above increase is included in the net discretionary revenue measures shown in the Stability Programme Update (SPU) 2019 (tables A6 and A8).
There have been no changes to discretionary revenue measures as presented in the SPU, therefore, this is included in the calculations underlying the 2019 Summer Economic Statement fiscal space table.