The financial background - budgeting for a deficit in 2018!

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Brendan Burgess

Founder
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19 consecutive quarters of employment growth since

Unemployment at 6.1% to fall to 4.75% in 2018

We will broadly balance our books in structural terms

We will achieve the MTO Medium Term Objective

They will not protect us from every crisis.

The list of potential external threats
  • Brexit
  • American Trade Policy
  • Various geopolitical threats
The projected deficit this year:

Deficit 0.2% of GDP forecast for 2018.

Or is it 0.5% .

Debt to GDP still too high, although it's down.

We can't ignore the level of debt

Rainy Day Fund
€1.5 billion to start from the Strategic Development Fund
€500m per year from 2019

Consultation paper to be published today

Total €60.9 billion in total voted expenditure (€12.7k per person)
€55.6 billion current expenditure.
€5.3 billion capital (up from €4.5 billion in 2017)
(€7.8 billion in 2021)

Housing, roads & schools
  • The new M17 between Gort and
  • Limerick Hospital Emergency unit
  • Pairc Uí Caoimh
  • Luas Cross City
We can't repeat old mistakes

Too much capital expenditure would lead to overheating of construction sector and economy

We must choose the right budgetary stance

Fiscal space was €500m in nominal terms.

I am raising €830m annual revenue

Total package :€1.2

898 m additional expenditure €214 additional capital.

Tax reduction €335m in income taxes

Growth in spending will be less than the forecast growth in the economy.




 
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