Pearse Doherty (Donegal, Sinn Fein)
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109. To ask the Minister for Finance the expected net effect of any carryover measures carried over for 2018 as a result of budget 2017 measures; and if he will provide a detailed breakdown thereof, including the way it is accounted for in the fiscal space projections. [14875/17]

Michael Noonan (Limerick City, Fine Gael)
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The carryover cost in 2018 of tax measures introduced in Budget 2017 was estimated to be in the region of €170 million. It is important to point out that the exact impact of carryover will be reviewed as part of the normal Budgetary process, as there are a lot of moving parts to be considered, such as economic growth, take up of various schemes and specific tax relevant factors, which could impact on the expected return from the measures. A summary of these measures and their impact is set out in the following table.

Summary of measures and their impact

*The carryover is calculated as the difference between the effect on a full year and that on 2017. For example, in relation to Section 110, it was estimated at the time of Budget 2017, that these changes would yield €50 million in 2017 and €35 million is a full year, which equates to a negative carryover of €15 million into 2018. While the yield from tackling offshore evasion would result in a one-off yield in 2017 of €30 million, and therefore represent a negative carryover of €30 million in 2018.

On the expenditure side, which is a matter for my colleague the Minister for Public Expenditure and Reform, Mr Paschal Donohoe T.D., and as detailed in Parliamentary Question number 184 of 16 February 2017, there is an estimated carryover into 2018 of approximately €0.4 billion arising from certain increases in Departmental expenditure included in the Budget Estimates for 2017. The spending review, scheduled to be carried out in advance of Budget 2018, will among other issues, consider the policy options for meeting the additional cost arising in 2018 of the Budget 2017 expenditure measures.

Carryover costs impact the fiscal space in the year in which they arise.