Wednesday, 10 July 2019
Department of Finance
125. To ask the Minister for Finance the additional resources for commitment to spending increases or taxation reductions available in budget 2020 if the projected 0.4% GGB surplus was reduced to nil; the estimated impact it would have on the structural deficit and expenditure benchmark; and if he will make a statement on the matter. [30289/19]
I can advise the Deputy that the additional resources for commitment to spending increases or taxation reductions available in Budget 2020, if the projected 0.4% General Government Balance surplus was reduced to nil, would be c. €1.2 billion (as outlined in Table 10 of the Stability Programme Update 2019).
The subsequent estimated impact on the structural deficit would be a deterioration of 0.4 percentage points to a minus 0.8 per cent of GDP.
As noted above, a c. €1.2 billion general government surplus is projected for 2020. If this were reduced to nil (i.e. additional expenditure of c. €1.2 billion), it would equate to a breach of the expenditure benchmark by €1 billion given that net fiscal space for 2020 is €0.2 billion (as set out in the Summer Economic Statement 2019 - Annex 1, Table A1).