Oireachtas Joint and Select Committees

Thursday, 18 June 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Mr. Derek Moran:

-----and that, in a sense, at that point you recommended a deficit or a surplus target and a spending and a tax parameter. What was held constant in an improving budgetary situation was the deficit target and any additional money came in, that was spent. That ... that's what happened. It doesn't mean that between then and the formulation of the budget that there was nothing happening because the expenditure campaign would have ... it would have initiated the expenditure campaign and there would have been regular briefing and updating through that channel back to the Minster and through the Government about progress on that. So the pressures would have been identified. And the pressures are twofold. I mean, let me be clear about that. The pressures on the expenditure side were overruns on the current year that inflated the base even further from the starting point and additional policy initiatives. And those things would have rolled up over the period. And it was one of those things with a December budget and with a November flow of revenues that came from the cyclical taxes going back to our earlier point, it allowed very late decisions to spend more and to tax less, and goes back to the point, based on largely transitional revenues.

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