Oireachtas Joint and Select Committees

Wednesday, 22 March 2023

Committee on Budgetary Oversight

Stability Programme Update: Discussion

Mr. Vasileios Madouros:

Maybe at a very high level I can explain a little bit of what I said in my remarks. This goes to the issue of excess corporation tax receipts or the fact that the corporation tax receipts are not necessarily linked to domestic economic activity. As Dr. Kelly was saying earlier, the risk with these is that they are very volatile. They might be here today but there is a risk that they might not be here tomorrow. In that context, it is important that they are not used to fund permanent expenditure because if that were the case, it could create an underlying structural vulnerability. We very much welcome the NRF although it is approaching its legislative limits.