Martin Ferris (Kerry North, Sinn Fein)
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Question 40: To ask the Tánaiste and Minister for Finance the expected impact on tax receipts of the slow down in job creation predicted for 2008. [7694/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Budget 2008 was published on 5 December last year. It contains forecasts for all the main macroeconomic variables in 2008, including the forecast rate of unemployment and the growth rate in employment.

These forecasts of the main macroeconomic variables were taken into account by my Department when producing estimates of expenditure and tax revenue for 2008.

The economic projections assume a modest rise in unemployment, as measured on the internationally recognised basis — the labour force survey, to average 5.6 per cent this year, from an estimated outturn of 4.6 per cent in 2007. At the same time employment is forecast to continue to show net gains of some 24,000 or a 1.1 per cent increase. However, this is not expected to fully absorb the projected increase in the labour force, so that a modest rise in unemployment is expected. The Budget 2008 tax revenue forecasts, which assume an increase in revenue of 3.5 per cent, have not been revised.