Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Deputy who understands these figures very well. To answer his question directly, we will not be using the stronger than expected tax receipts to boost the budget day package. We do not believe that would be an appropriate or prudent thing to do. We will, therefore, stick to the framework we set out in the summer economic statement. As the Deputy noted, that involves an increase in core expenditure of €4.2 billion, of which €1.1 billion will go towards the increase in the public capital investment programme next year. A further €2.1 billion will go towards meeting the existing level of service commitments, demographics, public service pay costs and so on. That leaves around €1 billion for new budget day measures on the expenditure side. That would be coupled with €500 million, which will be available to the Minister for Finance for a tax package.

That is the structure of the budget. We obviously welcome stronger than expected tax receipts. If that leads to a lower than predicted deficit outturn, as set out in the summer economic statement, that is a good thing. However, we certainly should not use this revenue to enhance what is already a strong budget package.

In overall terms, current expenditure growth for next year, as per the summer economic statement, stands at 4.6%, with overall expenditure growth for next year set to be around 5.5% because we are increasing capital spending by close to 12%.

Over the next five years, overall core expenditure growth will average around 5%. We believe that is an appropriate level at which to set expenditure growth and it would be imprudent and unwise to use stronger than expected corporate tax receipts, for example, to boost that expenditure growth further. We will not be doing that.

On the specific measures, they are the subject of live discussion. The Minister for Social Protection, Deputy Humphreys, and I, in particular, are working closely together on the social welfare Vote to ensure we respond in the best way we can to the increase in fuel costs and electricity prices that people are having to live with. In the last two budgets, there were no increases in core weekly social welfare rates but there were packages that were targeted and impactful, in relation to the living alone allowance, the carer's support grant, improvements in the working family payment, qualified child dependent allowances and so on. We did a lot in those budgets to help people who needed it the most. All of that will be taken into account and we look forward to finalising that in the coming days.