Gerald Nash (Louth, Labour)
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The Central Bank and the Irish Fiscal Advisory Council, IFAC, met this committee last week. The Central Bank stated that, based on the budgetary parameters published in the summer economic statement, budget 2024 will be expansionary. The Central Bank's point was that looking at the figures set out in the summer economic statement, SES, this will be a procyclical budget. Looking at the proposed tax cuts as well, that may be inadvisable in the context of an economy that is pretty red-hot. Based on the Central Bank's own assessment, its view - and IFAC agreed with this - was that this kind of budget and these kinds of expenditure and tax cuts could add 0.2% to 0.7% to inflation next year. Does the Minister, Deputy Michael McGrath, agree with that analysis and is he mindful of that when he is about to develop and formulate the budget in two weeks' time?