Rose Conway-Walsh (Mayo, Sinn Fein)
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367.To ask the Minister for Finance if the tax measures outlined on page 11 of the summer economic statement represent only tax expenditure, or if it is net tax measures; and if he will make a statement on the matter. [32396/24]

Pearse Doherty (Donegal, Sinn Fein)
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369.To ask the Minister for Finance if and how his Department incorporates increases in Government current and capital expenditure into its tax forecasts, for example, whether general Government expenditure is incorporated as a variable in its tax forecasting models; and if he will make a statement on the matter. [32440/24]

Pearse Doherty (Donegal, Sinn Fein)
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439.To ask the Minister for Finance if tax projections under the Stability Programme Update (SPU) incorporated or factored in increases in capital expenditure, for example, in relation to VAT, under the SPU; and if he will make a statement on the matter. [33722/24]

Jack Chambers (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 367, 369 and 439 together.

The stimulatory effect of government expenditure results in higher levels of consumer spending, employment and SME investment in our economy.

Projections of tax revenue produced by my Department are driven by macroeconomic indicators: for example, VAT forecasts are related to consumer spending. These macroeconomic drivers reflect, among other factors, the stimulating impact that Government expenditure has on the economy.

The fiscal projections also include additional factors which can influence receipts such as once-off factors, policy measures and specialist judgement.

My Department regularly reviews its method for forecasting tax revenues, with the most recent of these reviews taking place in 2019 with the publication of the Tax Forecasting Methodological Review. This review can be found at the below link.

My Department will publish a full suite of updated macroeconomic and fiscal projections with the Budget in October.

The Summer Economic Statement outlined a €1.4 billion taxation package for Budget 2025. As in previous years, it is expected that the €1.4 billion package announced on Budget Day will encompass both tax expenditures and revenue-raising measures.