Dáil Éireann Debate, Wednesday - 31 March 2021
107. Deputy Bernard J. Durkan asked the Minister for Finance to the extent to which he remains confident that adequate economic provision has been made or is available to facilitate recovery in the aftermath of Covid-19; the extent to which his Department continues to monitor the ill effects of the virus on the economy; and if he will make a statement on the matter. [17156/21]
Amharc ar fhreagraThe level of budgetary support that have been put in place by this Government to deal with the economic and social impact of Covid-19 has been extraordinary. With a total value of almost €38 billion, or nearly a fifth of national income (or GNI*), the Government has made use of all three avenues available: direct public expenditure, the taxation system and ‘below the line’ supports such as credit guarantees.
There has been a broad international consensus on the use of counter-cyclical budgetary policy to deal with the economic impact of the pandemic, with the European Commission, IMF, OECD, and ECB all subscribing to the view that because the crisis was not caused by underlying economic problems (imbalances), the correct approach is to support the economy.
As we emerge from lockdown and reopen our economy, the objective will be to close the gap in the public finances, but in an incremental and responsible way. We will aim to service our increased debt by growing the economy and the fundamental strengths in our economy – as seen by some of the underlying trends in our tax figures - will help us to do that.
Over the coming months the Government will publish the Stability Programme Update as well as the National Economic Plan. Both documents will help frame our recovery as we emerge from the pandemic.
