Tommy Broughan (Dublin Bay North, Independent)
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153. To ask the Minister for Finance the expected net effect of measures carried over for 2018 as a result of budget 2017 measures; how that is accounted for in the fiscal space projections; and if he will make a statement on the matter. [25810/17]

Michael Noonan (Limerick City, Fine Gael)
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It is currently estimated that there will be a total negative carryover into 2018 as a result of Budget 2017 tax measures 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 table below.

*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 €15 million carryover into 2018. While the yield from tackling offshore evasion would result in one-off yield in 2017 of €30 million, and therefore represent a negative carryover of €30 million in 2018.

The carryover impact of Budget 2017 current expenditure measures is outlined on Page 36, Table 9 of the Expenditure Report 2017. Based on the estimate at that time, there is an additional cost of €473m arising in 2018 from the carryover impact of certain Budget 2017 expenditure measures. This amount would need to be met from the available fiscal space or from reprioritisation of expenditure.

Finally, it should be noted that carryover costs impact the fiscal space in the year in which they arise.