Oireachtas Joint and Select Committees

Wednesday, 16 February 2022

Committee on Budgetary Oversight

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

Mr. Matt McGann:

That is a good question. Ultimately all our budgetary forecasting, to some degree, comes down to future projections. Whether we have indexation or not, we are able to calculate the cost but it is all dependent on the projections for growth, wages, etc. I do not think that it necessarily helps in the accuracy of the budgetary forecasting because we can say what we will have or what we will not have, depending on whether we index, but there is still a bound of uncertainty over both answers because they are both running off the same underlying projection of what growth or wage growth is.

Comments

No comments

Log in or join to post a public comment.