Oireachtas Joint and Select Committees

Wednesday, 13 July 2022

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Summer Economic Statement: Irish Fiscal Advisory Council

Mr. Sebastian Barnes:

Exactly. We think this spending rule is a very welcome innovation. If it is adhered to, it will help to anchor the public finances and place debt on a downward path. This year, inflation is going to be exceptionally high and very different from the assumptions that are built into the spending rule. That is why we think it was reasonable to deviate somewhat, temporarily, as the Government has set out in the summer economic statement. It is important that it is a temporary deviation. Obviously, if we have a spending rule and then we break it every year it is not a rule any more.