Oireachtas Joint and Select Committees
Thursday, 18 October 2018
Public Accounts Committee
2016 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Vote Accounting and Budget Management
Vote 11 - Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 2 - Collection of Pension Contributions due to the Exchequer
Chapter 3 - Control of Funding for Voted Public Services
Chapter 5 - Vote Accounting and Budget Management
Vote 11 - Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Comptroller and Auditor General Special Report 95: Financial Reporting in the Public Sector
Comptroller and Auditor General Special Report 99: Public Sector Financial Reporting for 2015
Comptroller and Auditor General Special Report 100: Public Sector Financial Reporting for 2016
9:00 am
Mr. Robert Watt:
The fiscal rules provide a framework within which decisions can be taken. Every year we must comply with structural balance in line with the overall medium-term objective, MTO, and keep increases in gross spending below the estimated trend in potential output in the economy. The MTO targets a structural deficit of 0.5% of GDP. There is discretion for this Parliament or that of any other member state to increase spending if it is compliant with the rules. There was a view that unexpected revenues would not necessarily be spent, which is true if such spending would not be consistent with the rules. However, if consistent with the rules, unexpected revenues can be used to fund unexpected spending. Our preference is to stick within the rules such that revenues are used to improve the balance if those revenues are a function of an improved economy and improving cyclical position. Ultimately, the fiscal rules are a matter of interpretation.
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