Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

171. To ask the Minister for Finance the expenditure limit for 2017; the amount of expenditure forecast for 2017; the consequences for Ireland of exceeding the expenditure limit; and if he will make a statement on the matter. [34797/16]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In Budget 2017, total general government expenditure of €76.6 billion is forecast for next year. This is c.€0.2 billion more than the level that is forecast as being compliant with the expenditure benchmark. The calculation in Table A7 of the Budget book shows net fiscal space for 2017 of €-0.2 billion, indicating an excess over forecast permitted expenditure. This level of deviation equated to about 0.07% of GDP, which is substantially below the 0.5% of GDP that is defined as a significant deviation.

This excess over permitted expenditure in 2017 is due to the projected increase in our non-discretionary EU Budget contribution arising from the large revision in our GDP. As this is a factor beyond our control, the Government has decided not to alter its fiscal plans to cope with a one-off level shift in our EU contribution.  

As regards our 2017 Budget, we expect that the European Commission will find that Ireland is broadly compliant with its obligation. Indeed, following the submission of draft budgetary plans for 2017, Ireland is one of the countries that the European Commission did not write to seeking clarification or changes.