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

Table 3 on page 22 of the summer economic statement 2017 sets out an indicative amount of €3.2 billion based on the parameters available at that time in respect of the estimate of net fiscal space for 2019. In arriving at the net amount, the fiscal space impact of certain pre-committed voted expenditure was deducted from gross fiscal space. The nominal amounts relating to these pre-commitments were set out in Table 1.3 on page 9 of the mid-year expenditure report with €400 million for demographics. Table 4 in the summer economic statement set out an indicative allocation of net fiscal space between expenditure and taxation measures and the rainy day fund. The rainy day fund is shown in the row entitled "d. contingency reserve/rainy day fund".

In relation to current expenditure, there are pre-commitments that arose from the summer economic statement of €700 million that would need to be funded from the current expenditure fiscal space amount or from savings and reprioritisations. There is a cost of €400 million arising in 2019 from the public services stability agreement. This amount was not included as pre-committed expenditure in the summer economic statement or the mid-year expenditure report as the agreement at that stage was subject to ratification by the membership of the public service unions. In addition and as outlined in the expenditure report 2018, there was a cost estimated at that time of €200 million in respect of the carry-over impact of certain measures that would need to be met from the available resources for 2019 or from savings or reprioritisation. The current estimate of the carry-over impact into 2019 is €300 million. I have already detailed the capital commitments and will not use up our time by repeating those.

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