Mick Wallace (Wexford, Independent)
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15. To ask the Minister for Public Expenditure and Reform the discussions he has had with the Department of Finance in relation to the proposed 50:50 ratio of tax cuts to public services investment in advance of the upcoming budget; his views that this constitutes the most effective use of public moneys; and if he will make a statement on the matter. [33312/15]

Brendan Howlin (Wexford, Labour)
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The fiscal adjustment required to bring sustainability to the public finances required both significant expenditure reductions and tax increases.

For Budget 2016 the Spring Economic Statement (SES) outlined that fiscal space of the order of €1.2 to €1.5 billion will be available in Budget 2016, and that the Government has decided to split this evenly between expenditure increases and tax reductions. This will allow the Government to encourage further economic growth, increase investment in public services, and reduce the tax burden for low and middle income earners.

This 2016 budgetary approach reflects the strategy of Government to marry the objectives of encouraging economic growth while increasing the resources available to deliver quality public services. An approach that looks to create the right conditions for growth in employment through progressive taxation, appropriate regulation and targeted investment can ensure that there are sufficient resources available to deliver effective public services for our citizens.

In relation to future years, decisions regarding the division of fiscal space between tax and expenditure measures will be taken in the relevant estimates cycle. Such decisions will take account of the prevailing economic conditions and Government's commitments to investing in public infrastructure and services.