Michael McGrath (Cork South Central, Fianna Fail)
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74. To ask the Minister for Finance the projected figures for net fiscal space in each of the years 2019 to 2023; and if he will make a statement on the matter. [51339/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Projections for fiscal space beyond 2021 have not been compiled or published by my Department. 

The current estimates of net fiscal space for the years 2019 – 2021 are set out below. These are the figures set out in the 2017 Summer Economic Statement and adjusted to take into account the arithmetic set out in the recent Budget.  It is important to stress that the figures, as always, are work-in-progress estimates and will evolve over time. The detailed calculations of gross and net fiscal space will be updated in the 2018 Summer Economic Statement following the publication by the European Commission of the reference rate, convergence margin and GDP deflator to be used for the calculations in relation to 2019.  

*This includes the rainy day fund contributions as well as previous allocations of fiscal space.

I also wish to highlight that the economy is now on a path towards full-employment. In these circumstances, I will not jeopardise our recovery by adopting pro-cyclical fiscal policies that overheat the economy and put our future livelihoods at risk.  Instead, I will focus on the appropriate stance of fiscal policy. 

In other words, I will focus on what is right for the economy and not on what is legally permissible under the rules.

Steady, incremental and sustainable budgetary policy is the way to improve our living standards and that is how the Government intends to decide and implement policy.