Tommy Broughan (Dublin Bay North, Independent)
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59. To ask the Minister for Finance his Department's objective of a balanced budget in structural terms in 2018; his Department's current appraisal of the strength of tax receipts in achieving that balance; if his Department is holding discussions with the EU Commission regarding the application of the fiscal rules and the maximising of the fiscal space available for budget 2018; and if he will make a statement on the matter. [31351/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset, I want to highlight that the Government is responsible for policy and, as such, it is the Government's objective (and not that of my Department) to balance the budget in structural terms in 2018.

My Department, however, is responsible for the technical analysis, including the production of economic and fiscal forecasts.  On the basis of my Department’s latest forecasts, which were published in the April 2017 Stability Programme Update, we remain on track to achieving a balanced budget in structural terms next year.  It is also worth pointing out that the economic forecasts were endorsed by the Irish Fiscal Advisory Council at the time. 

Tax receipts in the first six months of the year are up by around 4 per cent relative to the same period last year, but are marginally behind profile by 0.5 per cent.

My Department is currently discussing with the European Commission its (i.e. the Commission's) assessment of budgetary implementation in Ireland this year and last year, as the Commission has indicated a risk of deviation from the adjustment path towards a balanced budget in structural terms.

In relation to 2018, estimates of fiscal space will be set out in the Summer Economic Statement which will be published in July.

On a more general note, I want to stress that the Government will implement prudent budgetary policies, designed not to overheat the economy and targeted towards addressing the most pressing issues facing the economy and our society.

Finally, when it comes to the concept of fiscal space, it is crucially important that we look at the quantum of existing expenditure - rather than simply the incremental changes at the time of the budget - in order to ensure maximum value for money and efficiency.  The review of expenditure which is currently underway is being undertaken with this in mind.