Paschal Donohoe: Just €300m extra available for Budget 2018
Mr Donohoe and his officials have begun the process of preparing the budget, but with just €300m of additional spending on offer, he has made it known that applications for increased spending have to “realistic” and “evidenced-based”.
Mr Donohoe and Taoiseach Leo Varadkar are keen to manage expectations given the small amount of additional monies available this year.
In recent days, several ministers have commented on their intended spending priorities, but Mr Donohoe is said to be adamant that no unreasonable requests will be tolerated.
Mr Donohoe and Taoiseach Leo Varadkar are planning a multi-billion three-year budget announcement in October to cover up the fact that the Government will have just €300m available for tax cuts and spending increases next year.
Mr Donohoe is planning to map out the Government’s commitments as far as the year 2020 on tax reduction, pensions, childcare and parental leave, health, and education.
More than €7bn of fiscal space will be available to the Government in the two budgets that follow this year’s financial statement, assuming the economy does not sustain a serious fiscal shock from Brexit, American corporate tax changes, or an international downturn.
Meanwhile, Mr Donohoe welcomed the OECD’s Global Forum decision to award Ireland the highest international rating on tax transparency and exchange of information.
The OECD’s Global Forum has published the first 10 outcomes of a new and enhanced peer review process. Three jurisdictions — Ireland, Mauritius, and Norway — received the highest possible overall rating of “compliant”. Six others — Australia, Bermuda, Canada, Cayman Islands, Germany, and Qatar — were rated “largely compliant”. Jamaica was rated “partially compliant”.
