Martin Heydon (Kildare South, Fine Gael)
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I thank the Chairman for facilitating our contributions before 5.15 p.m. I thank the Minister and his officials for attending. In our post-budget scrutiny, it is right to acknowledge that, for the first time in more than a decade, our public finances are balanced in cash terms and we are in surplus territory. It is no mean achievement by the Minister, his predecessor, Deputy Noonan, and the officials who have worked with them down the years that we have got the country's economy back on track to that extent. It has been crucial for all of us, given the demands and pressures across society that must be funded. I welcome the considerable increases in spending in our health service, housing and education and, through Project Ireland 2040, the crucial 25% increase in infrastructural capital spending.

Regarding the comments on the IFAC report, I am mindful of the fact that the European Commission, whose job it is to assess formally our compliance with EU fiscal rules, has assessed budget 2019 as being compliant and has projected that we will achieve our medium-term objectives. That must be taken on board in any analysis of the IFAC report, which was published around the same time.

What analysis has the Department done of the impact on the economy of the increases in capital spending this year? If the Minister answers that question first, I will then ask about corporation tax.