Eamon Gilmore (Dún Laoghaire, Labour)
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Question 124: To ask the Minister for Finance the position regarding the deterioration of the Exchequer position over the first five months of 2008; if he has plans to present an updated profile of Government revenues for 2008 in view of the fact that he has acknowledged that the Exchequer is unlikely to recoup in the second half of 2008 the shortfall from the first five months of 2008; and if he will make a statement on the matter. [21960/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The most recent projections for the public finances were set out at Budget time when an Exchequer deficit of €4,866 million was projected for this year. At this time an economic growth rate of 3.0 per cent in GDP terms was forecast for 2008. A number of specific risks to that forecast were highlighted and these are now materialising. While my Department has not published new forecasts, I would point out that the current market consensus forecasts for growth now average around 2 per cent for this year. More modest growth has implications for the evolution of the public finances.

At end-April, my Department published information which showed that overall tax receipts for the first four months of the year were €736 million, or 5.3 per cent, behind target. At the time it was indicated that it was not expected that the tax shortfall would be recouped. Later today, as is the norm, my Department will publish detailed information in relation to the Exchequer position at end-May. In relation to tax revenue, these numbers will show a further deterioration in taxes and as previously indicated the shortfall is not expected to be recouped later in the year. My Department monitors tax receipts and expenditure on an ongoing basis and an updated view on the expected Exchequer position in 2008 will be presented at the end of this quarter.

While the fiscal position has weakened from that envisaged at Budget time, this has to be considered in the context of the strong position of the public finances such as our low debt to GDP ratio.

Ruairi Quinn (Dublin South East, Labour)
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Question 125: To ask the Minister for Finance if, in view of significant increases in the live register during the first quarter of 2008 and projected increases over the remainder of 2008, he will outline the impact such increases will have on the Exchequer in terms of increased social welfare payments and reduced income tax receipts; and if he will make a statement on the matter. [21965/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am aware of the recent pressure on the Live Register. The Government is closely monitoring the emerging position.

The 2008 expenditure allocation for the Exchequer social welfare Jobseekers Allowance scheme is almost €1,020 million. However, Jobseekers Allowance is only one of a number of demand led schemes that are funded from the Vote of the Department of Social and Family Affairs. The expenditure trend on the Jobseekers Allowance scheme, and also on the other social welfare Exchequer funded schemes, will, as I said, be closely monitored by Government during the course of the year. While it is still too early to reach a firm conclusion, there are indications that such pressures will not pose significant difficulties for the Social and Family Affairs Vote as a whole. Expenditure on the Jobseekers Benefit scheme is met from the Social Insurance Fund and does not fall on the Exchequer.

Regarding income tax, at the end of April receipts were up 2.8% compared to the same period last year and just 0.3% below expectations. Despite the Live Register pressure, this is a welcome indicator of the resilience of the Irish economy and my Department will continue to closely monitor overall tax performance over the coming months as a clearer trend emerges.

Jim O'Keeffe (Cork South West, Fine Gael)
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Question 126: To ask the Minister for Finance if he proposes new measures in 2008 to stimulate the economy; and if he will make a statement on the matter. [21945/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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While there are a number of challenges facing the economy, the fundamentals are still good. For instance, we have one of the lowest levels of public debt in the euro area, our markets are flexible allowing us to respond efficiently to adverse developments, we have a dynamic and well educated labour force, we have a pro-business outward looking society and the tax burden on both labour and capital is low.

Budget 2008 represented a stimulus to the economy and should help boost economic activity.

Sustained investment in our core economic infrastructure, as provided for in the National Development Plan, remains a key priority for the period ahead.

In this context, the Government is also committed to education, training and life-long learning in order to ensure that those losing their jobs can acquire the necessary skills to gain employment in expanding sectors of the economy.

Through the social partnership process, the Government is also supporting improvements in competitiveness by promoting sensible wage developments as well as reforming the public sector.

We are also committed to maintaining flexibility in our economy and to maintaining a low burden of taxation of capital and labour in order to reward work and enterprise.