Oireachtas Joint and Select Committees

Wednesday, 26 September 2018

Committee on Budgetary Oversight

Ex-ante Scrutiny of Budget 2019: Minister for Finance

1:30 pm

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

There are many different figures moving around regarding what it could be. What I am very conscious of, as Minister for Finance, is that once I say what the figure is, that is the figure on which I am accountable to the Oireachtas and that is the figure against which a Supplementary Estimate will be brought in. I am taking care with regard to indicating what that figure is because I am still in the middle of a lot of engagement with the Department of Health on it.

To deal with the other questions the Deputy has brought to me in terms of how that figure would be paid for and what the impact would be for next year, it will be paid for through a combination of three different matters. First, we will have underspends across other Departments, which are natural at the end of the budgetary year. They happen every year and they are likely to happen again this year. We are dealing with that now as part of the bilateral engagement I am having with many other Departments. Second, on where we expect to be on tax revenue, I will know where we are going to be with our September figures very soon. At that point, I will have to make a decision and a call regarding how we expect our October figures to land. Third, as we move through the year, we occasionally have slight buffers that are built in that allow us to deal with difficulties as they develop. To answer the Deputy's key question, I do not intend, as we move through this, to have to implement any decision that impacts on service delivery or on planned capital projects elsewhere.

There is one point I did not touch on, namely, what impact I believe it will have for next year.

There are still many moving parts to the budget. One of the two decisions I will be obliged to make next week will involve a final cut in respect of economic growth for next year. As members know, we always publish that as part of our budget documents on the day. More than the decision, the information will be our best judgment regarding the tax outlook for the year. It will not be easy to ensure that the budgetary framework will be unchanged for next year in light of the pressure relating to the area of health but I am working hard to ensure that it will not be changed from what I outlined in the summer economic statement. I have at least a further week's work to do in respect of that matter.

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