Oireachtas Joint and Select Committees

Tuesday, 19 September 2023

Committee on Budgetary Oversight

Pre-Budget Engagement: Central Bank of Ireland and ESRI

Dr. Robert Kelly:

It is fine but if I have strayed from the Deputy's question at all, please let me know. We are talking about the mix of expenditure again. Our focus is much more on the totality of what the impact of the level of expansion in the budget will be. We have been quite careful that it is relative to the stability programme update, SPU, until now. It has become more expansionary. Without doubt there are cohorts within that which have experienced more acute impacts from the interlocked shocks that Dr. Phelan pointed out earlier. It is about designing and thinking about the trade-offs within those as to how you best protect what you believe is most vulnerable from a Government point of view. There is a separation between the total demand you can create versus how you distribute that demand within the bounds of the 5% spending rule. What the Deputy is speaking to is that she feels there is a particular cohort, and I would not disagree, who may have experienced a more acute nature of the shock.

Comments

No comments

Log in or join to post a public comment.