Leo Varadkar (Dublin West, Fine Gael)
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Question 173: To ask the Tánaiste and Minister for Finance if he will calculate 2008 post-budget estimate for the current budget balance, the Exchequer balance and the general Government balance based on 2.3% GDP growth and a HIPC inflation rate of 2.8% or for any similar rates already calculated by his Department in drawing up budget 2008; and if he will make a statement on the matter. [5066/08]

Leo Varadkar (Dublin West, Fine Gael)
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Question 174: To ask the Tánaiste and Minister for Finance the projections, in view of the fact that a growth projection of 3% of GDP was used to calculate the 2008 post-budget estimate for the current budget balance, the Exchequer balance and the general Government balance, that were made by his Department for these parameters using a lower estimated growth rate; and if he will make a statement on the matter. [5067/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 173 and 174 together.

Budget 2008 was published on 5 December last year. At that time, my Department projected a GDP growth rate of 3 per cent for this year and a GNP growth rate of 2.8 per cent. While lower than that experienced in recent years this is still a robust rate of growth given the prevailing international conditions. Of course, as was noted at Budget time, there are risks, both internal and external, to these economic forecasts and my Department will, as always, continue to monitor the situation closely.

The Department's Budget Day forecasts have not changed and will not be formally re-evaluated until the next Pre-Budget Outlook which will be published after the summer. However, Chapter 4 of the Stability Programme Update in the Budget 2008 booklet provides a sensitivity analysis of the potential impact of different economic scenarios on the budgetary balance. Of course, estimates of the impacts of different economic growth rates on the General Government Balance should be seen as indicative and are subject to considerable uncertainty. The magnitude of any impact will vary according to the cause of the change in growth.