Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The 2018 summer economic statement will update the parameters for budget 2019 taking into account the publication by the European Commission of the important inputs in its spring economic forecast. The forecasts will take account of all policy changes announced since budget 2018. I am not in a position to comment on the resources that will be available in budget 2019 ahead of the statement. The 2018 stability programme update provides for an increase of €2.8 billion in voted expenditure, including pre-committed expenditure of €2.6 billion next year.  The pre-committed expenditure was composed of €1.5 billion for the national development plan, €400 million to provide for the public sector pay agreement, €400 million to provide for demographics and €300 million to provide for the carryover costs next year of measures introduced in the budget for this year.

Providing for these costs means a deficit of 0.1% of gross domestic product is projected for next year. The available parameters will become clearer in the next number of weeks. The Commission has now published its spring forecasts which are an important input. It is hugely important that we ensure that the policy the next budget implements recognises the fact that we have an economy for which the prospect of full employment is within reach and which continues to make steady progress on many of the matters on which Deputy Doherty has touched.

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