Oireachtas Joint and Select Committees
Wednesday, 7 September 2022
Committee on Budgetary Oversight
Updated Economic and Fiscal Position in Advance of Budget 2023: Discussion
Mr. Sebastian Barnes:
That is a good question. Deputy O'Donnell is right to point to the fact that we expect the budget balance to be much stronger than was expected. A good chunk of that is driven by corporation tax. Another chunk is driven by the strength of income tax, which has been an ongoing theme, and VAT. We will see where we are at the end of the year. I would not particularly relate the outturns to the decision the Government should take. The real issue for the Government is getting the balance right between, on the one hand, supporting people, which is a reasonable thing to do, and, on the other, not adding to inflation too much. The Government's own plans allowed for another €2.5 billion of temporary measures. Originally, that was planned for the Ukrainian refugees. In the end the costs there have been lower than anticipated.
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