This is one of the Council’s main reports. Two such reports are published each year.
This report assesses the Government’s Annual Progress Report. It looks at the economic environment, the overall fiscal stance, the forecasts, and how it complies with fiscal rules.
Report
Additional materials
- Data Pack
- Press Release
- Briefing Presentation
- Supporting items (additional analysis)
- Endorsement note
Summary
While the headline numbers look healthy, they mask growing weaknesses in the public finances. The State remains heavily reliant on corporation tax paid by a handful of foreign-owned multinationals. Excluding excess corporation tax, an underlying deficit of €11 billion (3% of GNI*) is forecast for this year.
The Government’s revised medium-term fiscal plan does not provide an appropriate guide for budgetary policy. The planned pace of net spending growth is faster than the sustainable growth rate of the economy. Ireland’s plan shows the fastest net spending growth in the EU.
Most corporation tax receipts are set to be spent rather than saved. Under the government’s plan, only €1 out of every €6 collected will be set aside, with the remaining €5 used for ongoing spending commitments.
The Government will need to borrow to finance some of its planned contributions to its savings funds. This departs from the original purpose of the new funds, which was to save, rather than spend, risky corporation tax receipts.
