Oireachtas Joint and Select Committees

Wednesday, 19 September 2018

Committee on Budgetary Oversight

Priorities for Budget 2019: Irish Fiscal Advisory Council

2:00 pm

Mr. Seamus Coffey:

It is not an "either/or" choice. Both can be achieved. If we want to devote additional resources to some sector, whether it be the level of pay in the health sector, which would have some of the largest impact given the number of staff in the HSE, that does not preclude us from running surpluses. We can do both; it is simply a matter of making choices. If there is not sufficient capacity in the €3.5 billion to meet all those demands, revenue-raising measures can be introduced. As long as we stay within the overall envelope, we should be able to move to a position of a small budget surplus and achieve whatever additional demands are deemed necessary. We do not see it as an "either/or" choice. We can have the appropriate counter-cyclical macroeconomic policy while also addressing some of the demands and pressures within the overall public system. It is not appropriate to play one off the other.