Oireachtas Joint and Select Committees

Wednesday, 4 December 2019

Committee on Budgetary Oversight

Fiscal Assessment Report: Irish Fiscal Advisory Council

Mr. Seamus Coffey:

As already highlighted, it is very much a political choice. To increase spend in one particular area does not necessarily require increases in taxes or cuts in spending elsewhere. We are speaking about an economy that in a benign scenario will continue to grow and generate fiscal resources. Choices can be made in regard to how those resources are used. For example, for 2020 we looked at an upper sustainable limit of increasing policy spending of 4.5%, which in monetary terms amounts to approximately €4 billion. That does not involve cutting the level of expenditure in any area or any additional taxes. There is a choice to be made in regard to the priorities for the use of that money. If it is not to be spent on the climate change expenditure areas highlighted by Deputy Eamon Ryan, that would suggest that the political process does not view those as being a priority.

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