Minister for Finance and Public Expenditure & Reform, Paschal Donohoe TD, is this afternoon (Thursday) giving an update on the economy to his Cabinet colleagues in advance of the publication of the Summer Economic Statement (SES), which is expected next week.
The SES, which outlines the key elements of the Government’s economic strategy, also provides an updated assessment of the fiscal space for next year in advance of Budget 2018.
Minister Donohoe will give an update on the economy, looking at the Government’s overall budgetary strategy, the aim of which is to balance the budget in 2018 for the first time since the economic crash.
Minister Donohoe said: “The economy is growing strongly, with domestic demand now driving the recovery, which is positive news. Unemployment now stands at 6.3%, we are approaching full employment and a situation whereby everyone who wants a job, can get a job. We have made huge progress in recent years but we must now be mindful of new risks, such as planning for an economy that could reach full capacity and dealing with the risk of Brexit’.
“While there is much focus each year at Budget time on the fiscal space, or the capacity for increased spending, it is crucial that we also look at the totality of what we are spending to ensure that we are getting best value for every cent of taxpayers’ money. This will ensure we can provide the services our people need, lower the tax burden in an affordable and sustainable way, keep our economy on the right track and build a society that provides opportunity for all.”
The Summer Economic Statement is a key component of the new budgetary process that is now in place. It will be followed by:
- The Mid-Year Expenditure Report (MYER), which sets out the pre-Budget position for Budget 2018 Estimates and provides an update on the Spending Review. The Review will be accompanied by a series of analytical papers evaluating programmes across Departments;
- The Mid-term Review of Public Capital Investment, which will offer a progress report and summary of Departmental submissions and public consultation on the matter and a rationale for targeted and managed increase in capital investment;
- The Comprehensive Spending Review, which is the first of a rolling three-year cycle of reviews that will assess all day-to-day spending by 2019.
ENDS