Oireachtas Joint and Select Committees

Tuesday, 16 June 2020

Special Committee on Covid-19 Response

Covid-19: Impact on the Fiscal Position

Mr. Sebastian Barnes:

At this stage, it is a little too early to judge. There is a lot of uncertainty, both about what will happen on the health side and what will happen on the economic side. Reviewing these decisions during the budget, as is set out in the coalition programme, is the appropriate time to do that.

In the fiscal assessment report, for illustrative purposes we took a total stimulus package of €10 billion. That would be enough to support the economy by approximately 3%. We would see that probably being spread over several years. This year, obviously, the measures would come in in the later part of the year. Therefore, most of the spending would be next year but perhaps some of it would be this year. We had pencilled in something like €3 billion this year, but this is all illustrative. It could be higher than that if the economy is weaker. It could be a bit less than that, obviously, if things work out better than expected.

That should show the Deputy the order of magnitude of the sizeable programme over multiple years that we had in mind.