Richard Bruton (Dublin North Central, Fine Gael)
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Question 54: To ask the Tánaiste and Minister for Finance the aggregate cost of the taxation measures and the expenditure measures outlined in the Programme for Government agreed by the parties who make up the Government; and the costings involved, distinguishing current and capital items. [26657/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Programme for Government is an agreed five year programme between the Government parties, in which we have set out our guiding policy principles.

Specifically our guiding economic principles for the next five years are: We will aim to achieve further significant, sustainable growth with our programme based on an average growth rate of 4.5%. We will operate a responsible fiscal policy characterised by broad budget balance and a declining debt burden. We will deliver the National Development Plan in full, on time and within budget to raise our productivity, to enhance our competitiveness and to secure our future prosperity. We will invest in increasing the productive capacity of the economy, particularly in terms of ensuring high-level of high-quality employment.

In terms of Budgetary Policy our guiding principles for fiscal policy for the next five years are to: keep the budget in broad balance and fully within our commitments under the Stability & Growth Pact; retain the flexibility to deal with any future shocks; set aside a minimum of 1% of GNP per annum to provide for the future pensions of today's workers; implement a series of significant and sustainable increases in key public services such as pensions, health and schools; keep the overall tax burden low and implement further changes to enhance the rewards of work while increasing the fairness of the tax system.

As the Deputy knows I recently published my Pre-Budget Outlook which sets out my Department's latest economic and budgetary assessment for the current year and the coming three years. The Pre-Budget Outlook is based on the technical assumption of providing for the existing level of public services. It also specifically provides for, in the aggregate, the capital commitments required to deliver the National Development Plan; and makes a technical indicative unallocated current provision. The Pre-Budget Outlook sets out a technical budgetary position for the coming three years. On that basis, it is forecast that the General Government position will be in deficit at -0.4% of GDP in both 2008 and 2009 before returning to a balanced position in 2010. This fiscal position is predicated on a weaker economic outlook than generally expected earlier in the year when the Programme was agreed. My Department's latest assessment is that GDP growth will average 31⁄2% over the period 2008 — 2010.

The Pre-Budget Outlook is another important step in the budgetary process which will be a unified process this year. The next step is the formulation and agreement by Government of spending and taxation plans for 2008. These will be presented to the House on Budget day which is 5 December next. At that time, I will announce my first instalment of this Government's delivery of the agreed Programme for Government and as is the norm the Budget measures will be costed in the usual comprehensive fashion.

I would remind the Deputy that the Programme for Government is a five year programme. Budget 2008 will be the first instalment of the delivery of this Programme.