Oireachtas Joint and Select Committees

Wednesday, 11 September 2019

Committee on Budgetary Oversight

Scrutiny of Tax Expenditures (Resumed)

Mr. Seamus Coffey:

Rather than adding to the €2.8 billion we would look at the €1.3 billion as being a potential increase in the planned spending amount for 2019. If that €1.3 billion materialises, or there is any increase in spending for the year, and it is repeated in 2020, which happens to a significant degree in health as Dr. Lawless knows, it would subtract from the €2.8 billion. The Government would be undertaking additional fiscal expansion. Whether it happens in late 2019 or is planned for 2020, the policy decisions are being taken now. For instance, if there is an increase in health spending which leads to the base, we cannot just say that it happened in 2019 so we will ignore it and do €2.8 billion for 2020. The total would be more then, and go beyond the €2.8 billion. The Minister for Finance has indicated that he is looking to adhere to this in the in the Mid-Year Expenditure Report published in July. He said that if repeated spendings in various Departments arise, which first arose in 2019 and are repeated in 2020, these will not add but subtract from the space available for the 2020 budget.

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