Jonathan O'Brien (Cork North Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

110. To ask the Minister for Finance if he will address a matter (details supplied) regarding a proposal. [28111/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Deputy is asking what impact an increase in exchequer capital expenditure – in addition to existing National Development Plan (NDP) commitments - of c. €1.2 billion, €0.96 billion and €1.02 billion would have on fiscal space in 2019-2021 respectively.

Compared with the figures in Table 3 of the 2018 Summer Economic Statement, the increases would use fiscal space on the order of an additional c. €300 million in 2019, €540.3 million in 2020 and €794.8 million in 2021.

While the fiscal rules would be permit such additional spending, the additional money would have to be raised from an increase in taxation or borrowing, increasing the deficit.

The fiscal rules alone are not sufficient to ensure sensible fiscal policy – increasing borrowing as our economy approaches full employment would be clearly inappropriate.  Sound budgetary policy respects the rules but must be guided by prudent judgement to avoid repeating the pro-cyclical mistakes of the past. The Government is committed to a budgetary policy that reduces, rather than increases, borrowing and supports steady and sustainable improvements in living standards.