Results 21-40 of 33,049 for speaker:Paschal Donohoe

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: I thank the Cathaoirleach and members for the opportunity to be here today, with the Minister, Deputy Chambers, to discuss the annual progress report for 2025. I offer my congratulations to Deputies O'Donoghue and Timmins on their election as Cathaoirleach and Leas-Chathaoirleach, respectively, of this very important committee. By way of background, the publication of the annual progress...

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: I will get the ball rolling. The Deputy asked about the scenarios and the impact on the job market. The Minister for public expenditure is doing a lot of work on the impact of our infrastructure plan on creating an environment in which more homes can be built. On tariffs, we modelled on the basis of a 10% rate between the EU and the US. Since then, we have seen figures that are a lot...

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: Much of that will have to do with refinancing government debt. We financed a large amount of government debt at moments in which interest debt were very low. The Deputy is aware of all of the changes in interest rates across the world in the past year or 18 months in particular. We assume then that the interest rate at which we will refinance existing debt will be higher. That is why it...

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: In terms of last year, 2024?

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: We underperformed by €1 billion.

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: Again, when we exclude the one-off Apple payments, we are behind profile on our corporate tax receipts. I will give the Deputy the exact figure later in our exchange.

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: Yes, that is what we expect at the moment. That is based on assumptions regarding how much of our corporate tax receipts could be at risk in any one given year. The reason that underlying deficit will be going up next year is driven by an increase in planned capital expenditure, which is the right thing to do for our economy, and a reasonably moderate level of planned current expenditure...

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: That 5.1% came from the budget submission we made. That is the expenditure ceiling we agree for the budget. We then issue that to the European Commission. That happened last year in the context of the medium-term fiscal plan. That figure comes from us. That 5.1% includes a provision in particular within current spending for population growth.

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: That is correct. Each country will have a different figure, based on their national budget submission.

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: Yes.

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: They are absolute figures but the figures in the current medium-term fiscal plan for the latter year of that five-year period was done on a technical basis. The Government will have to return to that later in the year to put in a new fiscal plan.

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: Yes. Deputy Chambers will be aware of the detail of it.

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: To complement what Deputy Chambers said there, as we look to the future, we have had a very significant increase in labour market participation already. We have never had more young people at work in Ireland than we have now. We have never had more women at work in Ireland than we have now. Overall, as important as all the individual policies from Government are, I believe what drives up...

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: This year it is the same.

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: I absolutely know the impact of the increase in prices in recent years has had a real effect on households and businesses. I could see, particularly during the moments when inflation soared so quickly, the effect it had on people's ability to get by and live, and the ability of businesses to trade. I understand completely the effect it can have on many. It is raised with me regularly in my...

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: The Government will always monitor economic conditions. I am not in a position to give hypothetical commitments because I do not believe it is fair, but we will be dealing with the finance Bill tomorrow afternoon in the Dáil. It would extend the VAT measure on gas and electricity up to October. We are doing that – the Deputy asked me a question about the cost of living –...

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: At the moment, I would see it as just a timing issue regarding when large taxpayers are due to pay us. It will be in the second half of the year before I know if there is anything different in this regard.

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: With regard to the underlying deficit the Deputy referred to, it should be said we are running large headline surpluses at the moment. What we are doing is assuming what the deficit would be if a certain amount were to go away in a single year. With regard to the mix between current expenditure and capital expenditure, the majority will be in current expenditure rather than capital...

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: We can give a breakdown of the mix between current expenditure and capital expenditure. Basically, and as the Deputy will know, the figures come from our asking what the deficit would be if we subtracted from our current position what we believe could be lost in a single year. Subtracting our expenditure from our revenue gets us to the underlying position. The majority of our expenditure...

Committee on Budgetary Oversight: Annual Progress Report 2025: Discussion (24 Jun 2025)

Paschal Donohoe: I should ask the Deputy whether he is going to support the finance Bill in relation to spending local property tax.