Oireachtas Joint and Select Committees

Wednesday, 31 January 2024

Committee on Budgetary Oversight

Report on National Development Plan: Economic and Social Research Institute

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein) | Oireachtas source

That is what I am trying to establish. Given some of what is in it, I am surprised it was not taken into consideration in the budget. My biggest concern in relation to capital projects is that the funding is insufficient. In terms of the scope, when Dr. Barrett pitched the problem, was the issue of inflation considered? Was the issue of inflation, and the fact there was not sufficient funding there, specifically outside the scope of the research? The reviewed NDP set targets in terms of the percentage of GNI* for capital investment. The targets for 2023 and 2024 were 4.9% and 5.1%, respectively. Now they are estimated by the Department to be 4.1% and 4.3%, respectively. There is a 0.8% shortfall in both years. That leaves us just over 15% behind profile for both of those years, which equates to between €2.3 billion and €2.4 billion. Estimates of the extent of the gap that has been identified vary from €14 billion, according to Cabinet Ministers, and €19 billion, according to the Irish Fiscal Advisory Council, IFAC. Why was that not considered within the report, given that it is likely to have such an impact? Will Dr. Barrett comment on that in terms of projects being delayed, stalled or maybe not done at all?

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