Oireachtas Joint and Select Committees

Wednesday, 2 February 2022

Committee on Budgetary Oversight

Indexation of Taxation and Social Protection System: Discussion (Resumed)

Photo of Seán CanneySeán Canney (Galway East, Independent) | Oireachtas source

The other question I was formulating in my mind was in relation to social welfare and all that goes with that. Dr. Doorley said one can take any year and model it based on the system or the interpretation that can be done with it. Let us say there is a projection of 6% inflation in 2023 and we index link everything and give an increase. If there is no increase predicted the following year, can we see a point where incomes will fall again? How does that work, for instance, if we have a deflationary situation?

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