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:

The numbers I have in mind are the core spending by the Government. The measure the Government has in the raw would go up by close to €5 billion next year, so higher than the figures suggested by the Deputy. What is true is that if one compares that with the cost of fully uprating pensions, pay and welfare to this year's inflation and to the July forecast for inflation, that would cost close to €7 billion. That assumes the public sector pay deal will be fully tracking inflation, however, which it will not. If one does that, there is not much of a gap between the full indexation of pensions and welfare, and the Government's other existing spending commitments. It is around €2 billion in the context of the envelope. Those things more or less line up. Of course, the Deputy was correct to say that does not leave a lot of space for doing other things. On the investment side-----

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